LIQUIDITY AND CAPITAL RESOURCES
Interim Report 2015/2016
LIQUIDITY AND CAPITAL RESOURCES
37
Net Debt
As at
31 December
2015
As at
30 June
2015
HK$m
HK$m
Consolidated net debt
68,162.7
53,539.1
NWSH (stock code: 0659)
7,086.7
6,389.1
NWCL (stock code: 0917)
29,605.2
27,255.6
NWDS – net cash and bank balances (stock code: 0825)
(1,020.1)
(408.8)
Net debt (exclude listed subsidiaries)
32,490.9
20,303.2
The Group’s debts were primarily denominated in Hong Kong dollar and Renminbi. In respect of the Group’s operations
in Mainland China, the Group maintains an appropriate level of external borrowings in Renminbi for natural hedging of
Renminbi contributed to those projects. The Renminbi exposure of the Group is mainly derived from the translation of
non-current assets and liabilities of the subsidiaries, associated companies and joint ventures in Mainland China with
functional currency of Renminbi and the Renminbi deposits held for future development costs to be expended to Hong
Kong Dollar. As at 31 December 2015, the translation of non-current assets and liabilities of subsidiaries, associated
companies and joint ventures with functional currency other than Hong Kong Dollar to Hong Kong Dollar by using
exchange rates at that day resulted a loss of HK$4,147.0 million was recognised in equity. Apart from this, the Group
does not have any material foreign exchange exposure.
The Group’s borrowings were mainly arranged on a floating rate basis. The Group used interest rate swaps and foreign
currency swap to hedge part of the Group’s underlying interest rate and foreign exchange exposure. As at 31 December
2015, the Group had outstanding derivative instruments in the amounts of HK$5,800.0 million and US$600.0 million
(equivalent to approximately HK$4,662.0 million). As at 31 December 2015, the Group had outstanding foreign currency
swap contracts in the amounts of US$60.0 million (equivalent to approximately HK$466.2 million).
During the period, a subsidiary of the Group issued US$950.0 million bonds (equivalent to approximately HK$7,381.5
million) at fixed rate of 4.375% due in 2022.
As at 31 December 2015, the Group’s cash and bank balances stood at HK$64,698.5 million (30 June 2015: HK$59,465.2
million) and the consolidated net debt amounted to HK$68,162.7 million (30 June 2015: HK$53,539.1 million). The
net debt to equity ratio was 31.4%, an increase of 7.3 percentage points as compared to 30 June 2015 mainly due to
payment of development costs, acquisition of 36% interest in Beames Holdings Limited (“Beames”) of HK$3,592.8
million and subscription for perpetual securities of US$900.0 million (equivalent to approximately HK$6,993.0 million).
