NOTES TO THE FINANCIAL STATEMENTS
22. Financial risk management:// CONTINUED 22.3 Liquidity risk
TOTAL CONTRACTUAL CASH FLOWS $000
PAYABLE <1 YEAR $000
PAYABLE 1-2 YEARS $000
PAYABLE 2-5 YEARS $000
PAYABLE >5 YEARS $000
Contractual cash flows maturity profile 2017 Non-derivative financial liabilities Trade payables
174,435 87,724
8,025
21,874
93
204,427 329,140
Borrowings: interest Borrowings: principal
84,026 142,138
15,252
400,000 204,299 1,195,377 348,176
2,147,852
Derivative financial (assets)/liabilities Cross currency swaps: inflow Cross currency swaps: outflow Forward exchange contracts: inflow Forward exchange contracts: outflow
(47,392)
(251,691)
(497,378)
(253,425)
(1,049,886) 1,158,347
55,518 336,758 508,127 257,944
(23,523) 23,787
– –
– –
– –
(23,523) 23,787
Net settled derivatives Interest rate swaps
29,173
17,503
17,816
(3,389)
61,103
Group contractual cash flows
699,722 398,920 1,387,954 364,651
2,851,247
TOTAL CONTRACTUAL CASH FLOWS $000
PAYABLE <1 YEAR $000
PAYABLE 1-2 YEARS $000
PAYABLE 2-5 YEARS $000
PAYABLE >5 YEARS $000
Contractual cash flows maturity profile 2016 Non-derivative financial liabilities Trade payables
146,703 95,285
10,306
18,006
82
175,097 292,610
Borrowings: interest Borrowings: principal
63,246 114,794
19,285
513,764 400,000 837,911 437,342
2,189,017
Derivative financial (assets)/liabilities Cross currency swaps: inflow Cross currency swaps: outflow Forward exchange contracts: inflow Forward exchange contracts: outflow
(142,688) 157,016
(49,065)
(578,809)
(456,627)
(1,227,189) 1,304,420
56,198 668,730 422,476
(3,301)
– –
– –
– –
(3,301)
3,460
3,460
Net settled derivatives Interest rate swaps
42,348
28,305
49,247
4,279
124,179
Group contractual cash flows
812,587 508,990 1,109,879 426,837
2,858,293
The above table shows the timing of non-discounted cash flows for all financial instrument liabilities and derivatives. The cash flows for capital bonds, included in borrowings, are disclosed as payable within 2 – 5 years as the next election date set for the capital bonds is 15 June 2022 and the bonds have no contractual maturity date.
Policies
Vector is exposed to liquidity risk where there is a risk that the group may encounter difficulty in meeting its day to day obligations due to the timing of cash receipts and payments. The objective is to ensure that adequate liquid assets and funding sources are available at all times to meet both short term and long term commitments. The board has set a minimum headroom requirement for committed facilities over Vector’s anticipated 18 month peak borrowing requirement. At balance date, in addition to short-term deposits, Vector has access to undrawn funds of $530.0 million (2016: $315.0 million).
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Vector://AR 17
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