Financial statements | Contents
Section B: Notes to the Group financial statements for the year ended 30 June 2025
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 follows:
2025
2024 $M $M
Floating interest rate borrowings
2,494
2,895
Floating interest rate exposures converted to fixed interest rates using interest rate swaps (notional principal amount) Fixed interest rate exposures converted to floating interest rates using cross currency interest rate swaps and interest rate swaps
(2,469)
(2,129)
2,148 2,173
1,614 2,380
Floating interest rate exposure 1
Fixed interest rate borrowings after hedging Less than 1 year
1,729 8,403 8,817
1,284 8,325 7,851 (113)
1-5 years
Over 5 years
Net capitalised borrowing costs and remeasurement adjustments
(50)
Total borrowings
21,072
19,727
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. Sensitivity
Sensitivity analysis on the impacts to profit after tax from movements in benchmark interest rates on floating rate instruments after hedging is presented in the table below. A sensitivity range of plus and minus 100 basis points has been selected as a reasonably possible shift in interest rates. This is not a forecast or prediction of future market conditions. Movement in post-tax profit 2025 2024 $M $M Interest rates +100bps (4) (4) Interest rates –100bps 4 4 Hedge accounting relationships Financial instruments designated as hedging instruments of foreign currency and interest rate risk and the effects of the hedge accounting relationship are as follows: 2025 2024 $M $M Borrowings hedging net investment in foreign operations—USD and CAD USD CAD USD CAD
Net investment hedge USD borrowings
Net investment hedge CAD borrowings
Net investment hedge USD borrowings
Net investment hedge CAD borrowings
Hedge accounting relationship
Hedging instrument
500
370
500
Carrying amount of borrowings in underlying currency
370
1:1
1:1
1:1
Hedge ratio
1:1
February 2026
November 2028
February 2026
November 2028
Maturity dates
At 30 June Carrying amount of hedging instruments
764
414
754
407
During the year Change in value of hedging instrument used for calculating hedge effectiveness Change in value of hedged item used for calculating hedge effectiveness
(10)
(7)
—
14
41 —
6 1
(1)
(13)
—
Hedge ineffectiveness recognised in profit and loss
—
145
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