URA

MANAGEMENT DISCUSSION AND ANALYSIS 58 The liquidity position, off-set by the borrowings of $2,791 million (31 March 2017: $3,288 million) mentioned in paragraph II (c) below, resulted in the net liquidity position including the securities holdings at 31 March 2018 of $18,430 million (31 March 2017: $16,453 million). (c) Debt securities issued The URA is rated AA+ by Standard & Poor’s. As at 31 March 2018 the outstanding debt securities issued by the URA was $2,791 million under the US$1,000 million Medium Term Note (MTN) Programme. (d) Net asset value The URA’s net asset value as at 31 March 2018 was $44,644 million (31 March 2017: $32,606 million), representing the Government’s capital injection of $10,000 million (31 March 2017: $10,000 million) and an accumulated surplus of $34,644 million (31 March 2017: $22,606 million). The financial highlights of the past ten years are summarized on page 91 of this Annual Report. (III) Capital Injection and Tax Exemption Following approval by the Finance Committee of the Legislative Council on 21 June 2002, the Government injected $10,000 million of equity capital into the URA in five tranches of $2,000 million each over a five-year period from 2002/03 to 2006/07. The Government continues to exempt the URA from taxation. (IV) Waiver of Land Premia by the Government The Government waives the land premia for redevelopment sites granted to the URA. For 2017/18, the land premia waived by the Government on 4 land grants amounted to $4,077 million. Since May 2001, a total of 40 land grants have been waived in respect of all the tendered projects with aggregate land premia totalling $19,488 million. Without this waiver, the URA’s net surplus for 2017/18 of $12,038 million for the year would have been lowered by $4,077 million to $7,961 million; its accumulated surplus as at 31 March 2018 would have been lowered by $19,488 million to $15,156 million; and its net asset value as at 31 March 2018 would have been decreased to $25,156 million.