COMMITMENT OF FUNDING The Group continues to raise committed funding from both capital markets and financial institutions. Committed funding constitutes 70% of the Group's loan portfolio. Committed funding is defined as loans from lenders or investors who have committed funds to the Group for one year or more. To prudently balance its portfolio, the Group utilises committed funding when appropriate and achieves cost effectiveness by tapping short-term, uncommitted funding from both capital markets and financial institutions. MATURITY PROFILE More than half (52%) of the Group's borrowings are long-term (i.e. due date more than 12-months). The Group has ample bank lines available, including S$900 million cash balance. The Group is comfortably positioned to refinance the balance of its borrowings that are maturing within one year. Yearly Maturity Analysis of Loans as at
31 December 2000 | |  | | | S$billion | % |
| Due within 1 year | | | | – revolving credit facilities | 1.8 | 20 | – term loans | 0.8 | 9 | – debt securities | 1.5 | 16 | – redeemable convertible cumulative
preference shares (RCCPS) | 0.3 | 3 | Between 1 & 2 years | 1.7 | 19 | Between 2 & 3 years | 1.6 | 17 | Between 3 & 4 years | 0.2 | 2 | Between 4 & 5 years | 0.2 | 3 | More than 5 years | 1.0 | 11 | The Group has maintained strong and varied banking relationships with a network of not less than 50 banks of various nationalities. INTEREST RATE PROFILE The group manages its interest rate exposure by maintaining a prudent mix of fixed and floating rates borrowings. Fixed-rate borrowings, which represented 42% of total loan portfolio at year-end, provide stability and allows the group to benefit from the current low interest rate. The Group actively manages its debt, taking into account the investment holding period and nature of its assets. This strategy allows it to capitalise on cheaper funding in a low interest rate environment and achieve protection against rate hikes. The Group also uses hedging instruments such as interest rate swaps to reduce its exposure to interest rate volatility. AVERAGE COST OF BORROWINGS Net interest expense increased by S$164 millions in 2000. This is mainly due to the purchase of roughly S$700 million worth of residential land sites, the acquisition of Walker Corporation Limited by the former DBS Land Group and interest expenses incurred on some commercial investments. In addition, the increase is also contributed by accounting for the full year impact of the Somerset GroupÕs interest expense. In 2001, the Group will seek to divest assets totalling between S$500 million to S$1 billion. Proceeds from this divestment will be available to reduce the GroupÕs gearing. Under the merged entity, the average cost of borrowings for the main currencies of borrowings were as follows: AUD | | 7.7% | GBP | 7.0% | HKD | 7.5% | SGD | 4.2% | USD | 7.0% | YEN | 1.0% | | 
