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

Made with FlippingBook Digital Publishing Software