OVERVIEW PERFORMANCE SUSTAINABILITY FINANCIALS APPENDIX 25 FINANCIAL INSTRUMENTS (continued) Liquidity risk Risk management policy Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to maintain a balance between continuity of funding and flexibility through the use of stand-by credit facilities. The Group’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Group has contractual commitments to incur capital expenditure with regards to its investment properties under development, development properties and investments in joint ventures (see note 31). The Group had put in place a $2 billion multicurrency debt issuance programme established on 22 January 2015 (see note 12). As at 31 December 2023, the uncommitted facilities available to the Group under the programme amounted to $1,922.3 million (2022: $1,922.3 million). The Group’s ability to settle its liabilities as and when they are due for settlement within the next twelve months is highly dependent on its ability to obtain new credit facilities, refinance its existing borrowing obligations or divest its assets as part of its capital recycling strategy. Exposure to liquidity risk The following are the contractual maturities of financial liabilities, including estimated interest payments: Cash flows Carrying amount Contractual cash flows Within 1 year 2 to 5 years More than 5 years $’000 $’000 $’000 $’000 $’000 Group 31 December 2023 Non-derivative financial liabilities Loans and borrowings 3,153,393 (3,403,138) (2,139,284) (1,122,939) (140,915) Lease liabilities 223 (226) (226) – – Trade and other payables(1) 919,864 (919,864) (563,979) (345,172) (10,713) 4,073,480 (4,323,228) (2,703,489) (1,468,111) (151,628) 31 December 2022 Non-derivative financial liabilities Loans and borrowings 3,320,126 (3,590,353) (1,697,871) (1,727,517) (164,965) Junior bonds 30,000 (32,738) (1,331) (31,407) – Lease liabilities 547 (565) (339) (226) – Trade and other payables(1) 757,825 (749,918) (523,003) (166,098) (60,817) 4,108,498 (4,373,574) (2,222,544) (1,925,248) (225,782) (1) Excludes advanced rental received. Notes to the Financial Statements Year ended 31 December 2023 205 ANNUAL REPORT 2023
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