Capital Management
| Financial Year Ended 31 March | |||
| GROUP | 2013 | 2012 | 2011 |
| Gross debt (S$ m) | 8,388 | 9,207 | 8,761 |
| Net debt (1) (S$ m) | 7,477 | 7,860 | 6,023 |
| Net debt gearing ratio (2) (%) | 23.8 | 25.1 | 19.8 |
| Net debt to EBITDA and share of associates' pre-tax profits | |||
| (number of times) | 1.0 | 1.1 | 0.8 |
| Interest cover(3) (number of times) | 24.5 | 20.7 | 21.8 |
| Average maturity of borrowings (years) | 6.8 | 7.3 | 6.5 |
During the year, the Group's gross debt decreased mainly due to net repayment of borrowings of S$805 million. As at 31 March 2013, net debt gearing ratio was 23.8%.
The Group has one of the strongest credit ratings among telecommunications companies in Asia. Singtel is currently rated Aa3 by Moody’s and A+ by Standard & Poor’s. The Group continued to maintain a healthy capital structure.
Singtel revised its policy to increase the dividend payout ratio to between 60% to 75% of underlying net profit, from the previous payout ratio of 55% to 70%. The Group remains committed to an optimal capital structure and investment grade credit ratings, while maintaining financial flexibility to pursue growth.
Notes:
- Net debt is defined as gross debt less cash and bank balances adjusted for related hedging balances.
- Net debt gearing ratio is defined as the ratio of net debt to net capitalisation. Net capitalisation is the aggregate of net debt, shareholders' funds and minority interests.
- Interest cover refers to the ratio of EBITDA and share of associates' pre-tax profits to net interest expense, where net interest expense is interest expense less interest income.
GROUP DEBT (S$ m)
Gross Debt
Net Debt(1)
AVERAGE MATURITY
OF BORROWINGS (Years)
Average Maturity