Page 78 - Urban Renewal Authority 2023-24 Annual Report

MANAGEMENT DISCUSSION AND ANALYSIS

(b) Total Liquidity
As at 31 March 2024, the URA’s total liquidity, including cash, bank deposits and debt securities
investments, was HK$18,194 million (31 March 2023: HK$23,623 million).

The URA placed the surplus cash on deposits with a number of financial institutions, and also invested
in fixed income products of the required credit rating in accordance with the investment guidelines as
approved by the Financial Secretary with capital preservation as the priority.
The liquidity position, off-set by the borrowings of HK$499 million (31 March 2023: HK$799 million)
mentioned in paragraph II (c) below, resulted in the net liquidity position including the securities
holdings as at 31 March 2024 of HK$17,695 million (31 March 2023: HK$22,825 million).

(c) Debt Securities Issued

The URA is rated AA+ by Standard & Poor’s Rating Services. As at 31 March 2024, the outstanding
debt securities issued by the URA under the Medium Term Note (MTN) Programme was HK$499
million.

(d) Net Asset Value
The URA’s net asset value as at 31 March 2024 was HK$46,360 million (31 March 2023: HK$50,280
million), representing the Government’s capital injection of HK$10,000 million (31 March 2023:
HK$10,000 million) and an accumulated surplus of HK$36,360 million (31 March 2023: HK$40,280
million).
The financial summary of the past 10 years is described on page 109 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 HK$10,000 million of equity capital into the URA in five tranches of HK$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. A total of 56 land
grants have been waived in respect of all the tendered projects with aggregate land premia totalling
HK$25,304 million up to 31 March 2024.

Without this waiver, the URA’s accumulated surplus as at 31 March 2024 would have been lowered by
HK$25,304 million to HK$11,056 million; and its net asset value as at 31 March 2024 would have been
decreased to HK$21,056 million.

76