X hits on this document

410 views

0 shares

0 downloads

0 comments

40 / 90

Notes to the Financial Statements

For the year ended 30 June 2009

3. FINANCIAL RISK MANAGEMENT (continued) Interest rate risk (continued)

As at the reporting date, the Consolidated Entity had the following variable rate borrowings, interest rate swap and interest rate cap contracts outstanding:

Weighted average interest rate

Balance

Weighted average interest rate

Balance

% 1.50 4.35 8.33

$’000 (6,475) 108,451 1,161

% 6.58 8.83 8.79

$’000 (6,950) 174,911 1,449

Consolidated 2009

Consolidated 2008

169,410

Cash Bank loans Lease liabilities

Net financial liabilities

103,137

(65,000)

(65,000)

(65,000)

(65,000)

(26,863)

39,410

Interest rate caps Interest rate swaps

Unhedged borrowings

As at 30 June 2009, the principal value of interest rate derivatives exceeded the total amount of borrowings.

The Parent Entity has no financial assets or liabilities exposed to Australian variable rate interest rate risk.

Interest rate swap contracts are exposed to fair value movements if interest rates change. The Consolidated Entity has also entered into Australian Dollar denominated interest rate cap transactions to hedge Australian Dollar borrowings against adverse movements in interest rates. Details regarding the swaps and caps are outlined in note 24(d).

At 30 June 2009, after taking into account the effect of interest rate swaps, approximately 49.7% of the Consolidated Entity’s

available borrowings are at fixed or capped rates of interest (2008: 44.3%).

The Consolidated Entity constantly analyses its interest rate exposure. Within this analysis, consideration is given to potential renewals of existing positions, alternative financing, alternative hedging positions and the mix of fixed and variable interest rates.

38 AVJennings Limited ABN 44 004 327 771

Document info
Document views410
Page views410
Page last viewedSun Jan 22 22:15:33 UTC 2017
Pages90
Paragraphs4889
Words32097

Comments