Notes to the financial statements
21. Borrowings
FAIR VALUE ADJUSTMENT ON HEDGED RISK $M
FACE VALUE $M
UNAMORTISED COSTS $M
CARRYING VALUE $M
MATURITY DATE Sep 2022 – Jan 2025
FAIR VALUE $M
2023
CURRENCY
–
(0.6)
–
(0.6)
–
Bank facilities – floating rate NZD
307.2 410.0
(1.5)
– –
305.7 314.3 410.4 387.9
Capital bonds – fixed rate
NZD
–
0.4
Wholesale bonds - fixed rate NZD
Mar 2024 – Oct 2026 Dec 2022 – Mar 2035 May 2025 – Nov 2027
1,212.9
(3.1)
(126.1)
1,083.7 1,121.9
Senior notes – fixed rate
USD
475.0
(1.6)
(3.8)
469.6 448.1
Senior bonds – fixed rate
NZD
Balance at 30 June
2,405.1
(6.4)
(129.9)
2,268.8 2,272.2
FAIR VALUE ADJUSTMENT ON HEDGED RISK $M
FACE VALUE $M
UNAMORTISED COSTS $M
CARRYING VALUE $M
MATURITY DATE Sep 2022 – Jan 2025
FAIR VALUE $M
2022
CURRENCY
Bank facilities – floating rate NZD
636.0
(1.7)
–
634.3 636.2
Capital bonds – fixed rate
NZD
–
307.2 410.0
(1.8)
– –
305.4 321.2 411.2 388.9
Wholesale bonds - fixed rate NZD
Mar 2024 – Oct 2026 Dec 2022 – Mar 2035 May 2025 – Nov 2027
1.2
Senior notes – fixed rate
USD
1,463.4
(3.5)
(51.3)
1,408.6 1,422.1
Senior bonds – fixed rate
NZD
475.0
(2.2)
(2.9)
469.9 449.4
Balance at 30 June
3,291.6
(8.0)
(54.2)
3,229.4 3,217.8
Policies
Borrowings are initially recorded at fair value, net of transaction costs. After initial recognition, borrowings are measured at amortised cost with any difference between the initial recognised amount and the redemption value being recognised in interest costs in profit or loss over the period of the borrowing using the effective interest rate method. The carrying value of borrowings includes the principal converted at contract rates (face value), unamortised costs and a fair value adjustment for the component of the risk that is hedged. The fair value is calculated by discounting the future contractual cash flows at current market interest rates that are available for similar financial instruments. The fair value of all borrowings, calculated for disclosure purposes, are classified as level 2 on the fair value hierarchy.
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