CapitaLand Integrated Commercial Trust - Annual Report 2021

Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2021 29 FINANCIAL RISK MANAGEMENT (continued) Managing interest rate benchmark reform and associated risks (continued) Total amounts of unreformed contracts, including those with an appropriate fallback clause The Group monitors the progress of transition from IBORs to new benchmark rates by reviewing the total amounts of contracts that have yet to transition to an alternative benchmark rate and the amounts of such contracts that include an appropriate fallback clause. The Group considers that a contract is not yet transitioned to an alternative benchmark rate when interest under the contract is indexed to a benchmark rate that is still subject to interest rate benchmark reform, even if it includes a fallback clause that deals with the cessation of the existing IBOR (referred to as an ‘unreformed contract’). The following table shows the total amounts of unreformed contracts and those with appropriate fallback language as at 31 December 2021. The amounts of financial liabilities are shown at their carrying amounts and derivatives are shown at their notional amounts. JPY LIBOR SOR Total amount of unreformed contracts Amount with appropriate fallback clause Total amount of unreformed contracts Amount with appropriate fallback clause $’000 $’000 $’000 $’000 Group 31 December 2021 Financial liabilities Unsecured bank loans – – 2,173,476 – Unsecured MTN notes 202,834 – – – Derivatives Cross currency swaps 200,000 – – – Interest rate swaps – – 1,210,000 – Trust 31 December 2021 Financial liabilities Unsecured bank loans – – 1,378,169 – Derivatives Interest rate swaps – – 735,000 – The Group’s exposure to SOR designated in hedging relationships is $1,210,000,000 (2020: $1,260,000,000) notional amount as at 31 December 2021, representing both the notional amount of the hedging interest rate swap and the principal amount of Group’s hedged SGD denominated unsecured bank loans maturing between 2022 to 2026 (2020: 2021 to 2026). The Trust’s exposure to SOR designated in hedging relationships is $735,000,000 (2020: $180,000,000) notional amount as at 31 December 2021, representing both the notional amount of the hedging interest rate swap and the principal amount of Trust’s hedged SGD denominated unsecured bank loans maturing between 2023 to 2026 (2020: 2024 to 2026). Annual Report 2021 289