18. BORROWINGS (continued) Measurement of fair value (continued) (e) Occurrence of events of default (continued) (ix) Clause 22.3 (Offshore Interest Reserve Accounts), ECW shall top up the offshore interest reserve accounts (SGD) and (USD) within five (5) business days of its release. (x) Clause 20.1 (Financial covenants), the Group shall, at all times meet the following financial covenants: Financial covenants Before proposed divestment* After proposed divestment* (a) Unitholders’ funds being no less than S$500,000,000 S$450,000,000 (b) Loan-to-value ratio being no more than 0.45 to 1 0.45 to 1 (c) Interest coverage ratio being no less than 2 to 1 1.75 to 1 (d) Ratio of the total liabilities to the Deposited Property (Aggregate Leverage) being no less than 0.40 to 1 0.40 to 1 * The proposed divestment refers to the divestment of the Divestment Properties to the Sponsor which was not completed as the Sponsor had not been able to obtain sufficient financing. The Manager is in the process of seeking various waivers from the lenders of the Offshore Facility in relation to, among others, the foregoing. The Manager has not received any indication from the lenders that they intend to accelerate the existing banks loans under the ECW facilities at the reporting date. 19. DEFERRED INCOME TAX Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current income tax assets against current income tax liabilities and when the deferred income taxes relate to the same fiscal authority. The amounts, determined after appropriate offsetting, are shown on the Statement of Financial Position as follows: Group 2024 2023 S$’000 S$’000 Deferred income tax liabilities – To be settled after 1 year 102,171 122,089 Deferred income tax assets – To be recovered after 1 year (349) (348) Deferred income tax liabilities (net) 101,822 121,741 EC WORLD REIT 108 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
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