The hedging agreement entered into was part of Tuaspring's financing arrangements. Currency exchange fluctuations and interest rate movements directly impact the exposure under the hedging agreement. The amount demanded is on top of the S$509.1 million and US$44.5 million being sought by Maybank, as the latter two sums were drawn down under the term loan facilities and the cash cover for contingent liabilities respectively. National water agency PUB took over the loss-making Tuaspring desalination plant in May, following the termination of the Water Purchase Agreement (WPA) with Tuaspring. Hyflux's debt moratorium ends on Aug 2.