Notes to the Financial Statements Year ended 31 December 2024 23 FINANCIAL INSTRUMENTS (continued) Credit risk (continued) Expected credit loss assessment (continued) Amounts due from immediate holding company, subsidiaries, associates, joint ventures, related corporation, affiliated company and non-controlling interests These balances are amounts lent to related parties to satisfy short term funding requirements. The Group and the Company use an approach that is based on an assessment of qualitative and quantitative factors that are indicative of the risk of default (including but not limited to audited financial statements, management accounts and cash flow projections, if available, and applying experienced credit judgement). There is no significant increase in credit risk for these exposures. Therefore impairment on these balances has been measured on the 12-month expected credit loss basis; and the amount of the allowance is insignificant. Guarantees At the reporting date, the Company has issued a guarantee to certain banks in respect of credit facilities granted to subsidiaries and joint ventures (see note 25). These guarantees are subject to the impairment assessment under SFRS(I) 9. The Company has assessed that these subsidiaries and joint ventures have strong financial capacity to meet the contractual cash flow obligations in the near future and hence, does not expect significant credit losses from these guarantees. The Company’s assessment is based on qualitative and quantitative factors that are indicative of the risk of default (including but not limited to audited financial statements, management accounts and cash flow projections, if available, and applying experienced credit judgement). Cash and cash equivalents The Group and Company held cash and cash equivalents of $107.0 million and $1.6 million respectively at 31 December 2024 (2023: $216.4 million and $0.6 million), which represent its maximum credit exposure on these assets. The cash and cash equivalents are held with banks with sound credit ratings. Impairment on cash and cash equivalents has been measured on the 12-month expected loss basis and reflects the short maturities of the exposures. The Group considers that its cash and cash equivalents have low credit risk based on the external credit ratings of the counterparties. The amount of the allowance on cash and cash equivalents was insignificant. 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 29). 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 2024, the uncommitted facilities available to the Group under the programme amounted to $1,922.3 million (2023: $1,922.3 million) and other committed banking facilities amounting to $677.8 million (2023: $545.2 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. OVERVIEW PERFORMANCE SUSTAINABILITY FINANCIALS APPENDIX 215 ANNUAL REPORT 2024
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