2018 marked its 11th year ending in a net cash position.
This chart from Temasek Holdings, Singapore's national wealth fund, shows how the investment firm managed its debt in the last four years. Its cash and bank balances, together with short-term investments, were four times the $8.5b debt it has due over the next decade.
Temasek's primary sources of funds include divestment proceeds, as well as dividends and distributions received from their portfolio. "These are supplemented by our Temasek Bonds and Euro-commercial Paper," it added.
For this year, dividend income was at $9b, whilst divestments were at $16b. Temasek has debt totalling $1.4b due in one year, $2.9b due in one to three years, $4.2b due in three to 10 years, and $4.3b due in 10 years. Temasek's debt levels were lower compared to 2015.
"We manage our leverage, liquidity, and balance sheet prudently for resilience and flexibility, even in times of extreme stress. We ensure that our primary sources of cash flows can cover our non-discretionary expenses, such as operating expenses, interest to bondholders, and debt repayments," the company said.
Temasek had a record year for its portfolio which grew to $308b thanks to "good global economic momentum and buoyant equity markets.” However, it warned also of medium-term risks brought about by trade and geopolitical conflicts.
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