BUILDING LANDMARKS, CHARTING GROWTH
117
Annual Report 2015
BORROWINGS
As at 31 December 2015, Perennial’s gross borrowings
stood at S$1.9 billion. With cash and cash equivalents
of S$162 million, net borrowings were S$1.7 billion as at
31 December 2015. The borrowings were mainly used to
fund investments in the real estate business.
During the Period, Perennial established a S$2 billion
Multicurrency Debt Issuance Programme (“
Debt
Issuance
Programme
”) and issued S$100 million
in principal amount of 4.25% Fixed Rate Notes
due 2018 under the Debt Issuance Programme.
In addition, Perennial issued its maiden retail bonds in
October 2015 for S$300 million at 4.65% per annum with
a 3-year tenure.
SHAREHOLDERS’ EQUITY
As at 31 December 2015, the issued and paid-up
ordinary share capital of the Company of S$2.2 billion
comprised approximately 1.7 billion shares. The increase
in the number of shares came from the issuance of
shares for the acquisition of assets during the RTO and
the acquisition of PCRT units during the VO. Perennial’s
other reserves mainly comprised capital reserve from the
acquisition of businesses during the RTO and foreign
currency translation reserves from the translation of
overseas operations in local currency into Singapore dollar.
CAPITAL MANAGEMENT
Overview
Perennial exercises prudent capital management and
strives to optimise cash flow and capital efficiency by
proactively managing its overall liquidity position and
debt maturity profile. To improve financial flexibility and
to support its funding requirements, investment needs
and future growth plans, Perennial has expanded and
diversified its funding sources by putting in place a
combination of banking facilities and debt capital market
programmes.
As at 31 December 2015, Perennial had a total asset
size of S$6.5 billion supported by a strong equity base of
S$3.9 billion and total gross borrowings of S$1.9 billion.
Perennial’s net borrowings were S$1.7 billion which
gave a net debt-equity ratio of 0.45 times as at
31 December 2015.
Sources of Funding
As at the end of FY2015, Perennial’s debt comprised
76.6% bank borrowings and 23.4% capital market
issuances.
In March 2015, Perennial Treasury Pte. Ltd., Perennial’s
wholly-owned treasury vehicle, successfully issued
S$100 million 4.25% Fixed Rate Notes due 2018
(“
Fixed Rate Notes
”) under the Debt Issuance
Programme which was established on 22 January 2015.
The net proceeds arising from the issue of the Fixed
Rate Notes were used to refinance existing borrowings
and finance new investments. As at 31 December 2015,
Perennial has an available limit of S$1.9 billion under the
Debt Issuance Programme that can be tapped on to
meet its future financial obligations.
In October 2015, Perennial issued its maiden S$300 million
4.65% per annum Retail Bonds due 2018 (“
Retail
Bonds
”), which was upsized from an initial offering
of S$150 million following strong interest from both
the public under the public tranche and private banks,
institutional and corporate investors under a private
placement. Overall, the retail bonds offer attracted a
total subscription of about S$618 million which is about
9.8 times oversubscribed based on the public offer
tranche. This reflected the debt investors’ confidence
in Perennial. The net proceeds were used (i) to repay
bank loans, (ii) for equity injection into a subsidiary which
owns the PIHMH in Chengdu, China, (iii) to finance new
investments and (iv) to fund the working capital and
capital expenditure of certain subsidiaries of Perennial.
