Notes to the Financial Statements For the financial year ended 31 December 2024 34 FINANCIAL GUARANTEE CONTRACTS AND CONTINGENT LIABILITIES The Group accounts for its financial guarantees as financial liabilities. At the reporting date, the Group does not consider that it is probable that a claim will be made against the Group under the financial guarantee contracts. Accordingly, the Group does not expect any net cash outflows resulting from the financial guarantee contracts. The Group and the Company issue guarantees only for subsidiaries and to related parties. The Group The Company 2024 2023 2024 2023 $’M $’M $’M $’M (a) Guarantees given to banks to secure banking facilities provided to: – subsidiaries – – 5,223 6,906 – joint ventures 4 5 – – 4 5 5,223 6,906 (b) Significant undertakings by the Group: (i) As at 31 December 2024, two subsidiaries of the Group have pledged their shares in joint ventures for term loan and revolving facilities of $1,072 million (2023: $1,128 million) obtained by the joint ventures. As at 31 December 2024, the loan amount outstanding was $946 million (2023: $934 million). (ii) As at 31 December 2024, a subsidiary of the Group has provided several undertakings on cost overrun, security margin and/or interest shortfall on several basis as well as project completion undertakings on a joint and several basis, in respect of term loan and revolving construction facilities amounting to $188 million (2023: $293 million) granted to joint ventures. As at 31 December 2024, the loan amount outstanding was $127 million (2023: $175 million). (c) Government assistance In response to the economic impacts of the COVID-19 pandemic, various financial support schemes were provided by the governments which provided guarantees for bank loans borrowed by the Group’s subsidiaries. As at 31 December 2024, the amount outstanding under the loan facility that was borrowed by a subsidiary in France was $15 million (2023: $26 million). Interest rates for the guaranteed loan was at 1.0% (2023: 1.0%) per annum. The Group determined that the interest rates for an equivalent loan issued on an arm’s length basis without the guarantee was at 4.5% (2023: 5.1%) per annum. There are no unfulfilled conditions or contingencies for the government assistance as at 31 December 2024. 35 SIGNIFICANT RELATED PARTY TRANSACTIONS For the purposes of these financial statements, parties are considered to be related to the Group if the Group has the direct and indirect ability to control the party, jointly control or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group and the party are subject to common control or significant influence. Related parties may be individuals or other entities. The Group considers the directors of the Company, Group CEO and key management officers of the corporate office as well as CEOs of the business units to be key management personnel in accordance with SFRS(I) 1-24 Related Party Disclosures. 186 CapitaLand Investment Limited Notes to the Financial Statements For the financial year ended 31 December 2024 35 SIGNIFICANT RELATED PARTY TRANSACTIONS (continued) In addition to the related party information disclosed elsewhere in the financial statements, there were other related party transactions which were carried out in the normal course of business on terms agreed between the parties as follows: The Group 2024 2023 $’M $’M Related corporations of ultimate holding company Management fee income 7 10 Purchase of goods and services (5) (9) Capital injection in joint ventures^ 22 41 Receivables included in trade and other receivables 1 2 Immediate holding company Management fee income 3 4 IT support services income 4 5 Others 2 5 Fellow subsidiaries under the immediate holding company Management fee income 25 26 IT support services income 6 8 Administrative support services income 4 4 Management fee expenses (1) (3) Rental expense (*) (3) (Return of capital from)/Capital injection in joint investments^ (28) 227 Others 13 10 Associates and joint ventures Management fee income 511 490 Acquisition and divestment fees income, accounting services fee income, marketing income and others 110 95 Proceeds from sale of equity investments 1,445 251 Purchase consideration for acquisition of equity investment 150 – Remuneration of key management personnel (KMP) Salary, bonus and other benefits 16 17 Employer’s contributions to defined contribution plans * * Equity compensation benefits 10 17 26 34 ^ Capital include loans. * Less than $1 million 187 Annual Report 2024
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