MANAGEMENT DISCUSSION & ANALYSIS FINANCING Changes in Financing Audited Financial Information During the year, the Group raised approximately HK$19,127 million. This comprised: • term and revolving loan facilities aggregating HK$12,415 million • medium term notes aggregating HK$6,712 million During the year, the Group made various repayments of debt. This comprised: • repayment and prepayment of term and revolving loan facilities aggregating HK$2,930 million • repayment of medium term notes of HK$200 million During the year, the Group acquired the remaining equity interest in Taikoo Li Chengdu and hence consolidated its debt. Loans and bonds due within due after Lease Total one year one year liabilities 2023 2022 HK$M HK$M HK$M HK$M HK$M At 1st January 700 22,135 614 23,449 25,167 Loans drawn and refinanced 5,524 5,999 – 11,523 7,237 Bonds issued – 6,742 – 6,742 – Acquisition of subsidiary companies 438 2,713 42 3,193 – Bonds matured (200) – – (200) (3,899) Repayment of loans (830) (2,100) – (2,930) (5,110) New leases arranged during the year – – 62 62 160 Principal elements of lease payments – – (82) (82) (66) Reclassification 1,875 (1,875) – – – Currency adjustment 52 (79) (16) (43) (44) Other non-cash movements 4 71 (13) 62 4 At 31st December 7,563 33,606 607 41,776 23,449 Net Debt Audited Financial Information Net debt at 31st December 2023 was HK$36,679 million, compared with HK$18,947 million at 31st December 2022. The increase in net debt principally reflected capital and development expenditure and investment in joint venture companies and acquisitions of subsidiary companies. The Group’s borrowings are principally denominated in Hong Kong dollars, Renminbi and United States dollars. Outstanding borrowings at 31st December 2023 and 2022 were as follows: 2023 2022 HK$M HK$M Borrowings included in non-current liabilities Bank borrowings 13,159 7,311 Bonds 20,447 14,824 Borrowings included in current liabilities Bank borrowings 6,463 500 Bonds 1,100 200 Total borrowings 41,169 22,835 Lease liabilities Included in non-current liabilities 527 535 Included in current liabilities 80 79 Less: short-term deposits and bank balances 5,097 4,502 Net debt 36,679 18,947 82