In Temasek, we take a prudent approach to capital and liquidity management. Leverage and liquidity are managed to ensure resilience and flexibility of our balance sheet, even in times of extreme stress. Our Board sets our overall debt limit, taking into account our shareholder funds and cash flow.

Capital and Liquidity Management

Our primary sources of funds include divestment proceeds, dividend income from our portfolio, and distributions from our investments in funds. These are supplemented by our Temasek Bonds and Euro-commercial Paper. 

We proactively maintain a long dated and well distributed debt maturity profile comprising long term and short term debt for funding flexibility and cost efficiency. We manage our cash flow to ensure dividends and income from investments cover our non-discretionary expenses.

Liability Management

As a policy, Temasek does not issue any financial guarantees for the obligations of our portfolio companies. Temasek also does not guarantee the debt issued by our portfolio companies.

Foreign Exchange Management

Our risk-adjusted hurdle rate for each investment includes foreign exchange (FX) risk. Where appropriate, we close up our FX exposure in the forward market.

(for year ended 31 March)

Key Credit Parameters vs Debt Maturity Profile (S$b)

Key Credit Parameters vs Debt Maturity Profile