182 CapitaLand Integrated Commercial Trust Notes to the financial statements Year ended 31 December 2024 29 FINANCIAL RISK MANAGEMENT (continued) Hedge accounting (continued) Net investment hedges The Group has foreign currency exposures from the net investment in its foreign subsidiaries in Luxembourg and Netherlands that has EUR functional currency, and in Australia that has AUD functional currency. The risk arises from fluctuation in spot exchange rates between EUR and AUD against SGD that will result in a fluctuation in the carrying amount of the Group’s net investment in its foreign subsidiaries in Luxembourg, Netherlands and Australia. As at reporting date, the Group’s net investment in its foreign subsidiaries is hedged by a number of EURdenominated unsecured bank loans of carrying amount of $456,173,000 (2023: $472,247,000) and AUDdenominated unsecured bank loans of carrying amount of $517,819,000 (2023: $538,618,000), which mitigates the foreign currency risk arising from the subsidiaries’ net assets. The fair value of these borrowings at 31 December 2024 is $971,750,000 (2023: $1,004,152,000). These loans are designated as a hedging instrument for the changes in the value of the net investment that is due to changes in the EUR/SGD and AUD/SGD spot rate. The amounts related to items designated as hedging instruments were as follows: Nominal amount Carrying amount – assets Carrying amount – liabilities Line item in the Statements of Financial Position where the hedging instrument is included Changes in the fair value of the hedging instrument recognised in Unitholders’ Funds Amounts reclassified from Hedging Reserve to Statement of Total Return Line item in Statement of Total Return affected by the reclassification $’000 $’000 $’000 $’000 $’000 Group 2024 Foreign exchange denominated debt (EUR) (456,892) – (456,173) Loans and borrowings (16,217) – NA Foreign exchange denominated debt (AUD) (518,118) – (517,819) Loans and borrowings (20,925) – NA The amounts related to items designated as hedged items were as follows: Change in value used for calculating hedge ineffectiveness FCTR Balances remaining in the FCTR from hedging relationships for which hedge accounting is no longer applied $’000 $’000 $’000 Group 2024 EUR net investment 8,567 37,460 – AUD net investment 12,908 64,846 – 183 Annual Report 2024
RkJQdWJsaXNoZXIy NTkwNzg=