Financial statements
Section B: Notes to the Group financial statements for the year ended 30 June 2024
Section B: Notes to the Group financial statements for the year ended 30 June 2024
B14
Financial risk management and derivatives (continued)
Market risk (continued) Interest rate risk (continued) Exposure The Group’s exposures to interest rate risk after hedging at the end of the reporting period are as follows:
2024
2023 $M $M
Floating interest rate borrowings
2,895
3,014
Less: floating interest rate borrowings converted to fixed interest rates using interest rate swaps (notional principal amount) Fixed interest rate borrowings converted to floating interest rates using cross-currency interest rate swaps
(2,129)
(2,672)
1,614
— 10
—
Bank overdraft
Floating interest rate exposure 1 Fixed interest rate borrowings Less than 1 year
2,380
352
1,284
280
10,460
1-5 years
10,104
Over 5 years
5,716
7,696
Shareholder loan notes
— 218
Net capitalised borrowing costs and remeasurement adjustments
(113)
(92)
Total borrowings
19,727
18,558
1 Exposure to floating rate borrowings is offset by cash and cash equivalent balances held at variable rates. An analysis by maturities of the Group’s borrowings is provided in the liquidity risk section below. Hedging instruments Derivative instruments designated as hedging instruments of interest rate risk and the effects of the hedge accounting relationship are as follows: 2024 2023 $M $M Interest rate swaps hedging cash flow interest rate risk Carrying amount 209 263 Notional amount 2,129 2,672
December 2024 to January 2035
July 2024 to January 2035
Maturity dates
1:1
Hedge ratio
1:1
139
Change in fair value of outstanding hedging instruments since 1 July Change in value of hedged item used to determine hedge effectiveness
90
(142)
(91)
Weighted average hedged interest rate for the year 1
1.9 %
1.9 %
1. Based on average fixed rate of interest rate swap contracts, which does not include any margins that may be applicable on the hedged debt instruments.
2024
2023 $M $M
Cross-currency interest rate swaps hedging fair value interest rate risk Carrying amount
(92)
— —
1,671
Notional amount
March 2032 to March 2036
Maturity dates
N/A N/A
1:1
Hedge ratio
(37)
Change in fair value of outstanding hedging instruments since 1 July Change in value of hedged item used to determine hedge effectiveness
— —
24
Interest rate based on semi-annual reset 1
BBSW
N/A
1. Margins are added to the floating BBSW rate.
156
155
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