Notes to the Financial Statements For the financial year ended 31 December 2024 32 FINANCIAL RISK MANAGEMENT (continued) (e) Offsetting financial assets and financial liabilities The Group’s derivative transactions that are not transacted through an exchange, are governed by the ISDA Master Netting Agreements. In general, under such agreements, the amounts due on a single day in respect of all transactions outstanding in the same currency are aggregated into a single net amount and settled between the counterparties. In certain circumstances, for example when a credit event such as a default occurs, all outstanding transactions under the agreement are terminated, the termination value is assessed and set off into a single net amount to be settled. The above ISDA agreements do not meet the criteria for offsetting in the balance sheets as a right of set-off of recognised amounts is enforceable only following an event of default, insolvency or bankruptcy of the Group or the counterparties. In addition, the Group and its counterparties do not intend to settle on a net basis or to realise the assets and settle the liabilities simultaneously. There is no offset of the Group and the Company’s financial assets and financial liabilities as of the reporting dates. 33 COMMITMENTS (a) Operating lease The Group’s operating lease relates mainly to leases with lease terms of 12 months or less or low value assets. Future minimum lease payments for the Group in non-cancellable operating leases are as follows: The Group 2024 2023 $’M $’M Lease payments payable: Not later than 1 year 43 30 Between 1 and 5 years 5 1 After 5 years 1 2 49 33 (b) As at the reporting date, the Group has the following significant commitments: The Group 2024 2023 $’M $’M Commitments in respect of: – capital expenditure contracted but not provided for in the financial statements 12 80 – development expenditure contracted but not provided for in the financial statements 1 104 – capital contribution in associates, joint ventures and investee companies 1,230 1,135 – purchase of properties contracted but not provided for in the financial statements – 67 – credit financing to external parties – 223 1,243 1,609 184 CapitaLand Investment Limited Notes to the Financial Statements For the financial year ended 31 December 2024 33 COMMITMENTS (continued) In addition to the above, the Group has announced the following conditional acquisitions which are pending completion as at end of the reporting date: (i) In November 2024, the Group’s wholly-owned subsidiary, CLI Begonia Pte. Ltd., entered into a sale and purchase agreement with unrelated third parties to acquire a 40% stake in SC Capital Partners Group (SCCP) for US$214 million (approximately S$280 million), and the remaining stake in SCCP in phases over the next five years, subject to the fulfilment of conditions. As part of the partnership, the Group will also invest a minimum of US$400 million (approximately S$524 million) strategic capital in SCCP’s fund strategies to support the growth of the platform. The acquisition of the initial 40% interest was subsequently completed in March 2025. (ii) In December 2024, the Group announced the strategic acquisition of the property and corporate credit investment management business of Wingate Group Holdings (Wingate) for A$200 million (approximately S$173 million) plus an earn-out. CLI’s acquisition of Wingate is subject to the fulfilment of conditions, including regulatory approval and is expected to be completed in the first half of 2025. (c) As at the reporting date, the notional principal values of financial instruments were as follows: The Group 2024 2023 $’M $’M Interest rate swaps 2,658 3,702 Forward foreign exchange contracts 718 821 Cross currency swaps 645 1,017 Interest rate cap 57 – 4,078 5,540 The maturity profile of these financial instruments was: The Group 2024 2023 $’M $’M Not later than 1 year 1,219 2,400 Between 1 and 5 years 2,859 2,869 After 5 years – 271 4,078 5,540 185 Annual Report 2024
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