New Zealand Gazette – 1996 – No. 174

Page 4591

✨ Financial Statements



2 DECEMBER NEW ZEALAND GAZETTE 4591

ELECTRICITY CORPORATION OF NEW ZEALAND LIMITED

NOTES TO THE FINANCIAL STATEMENTS

10. TERM LIABILITIES (Cont.)

INTEREST RATE REPRICING

ECNZ has entered into a number of long term borrowings at fixed rates, which have been swapped through the use of interest rate swaps into repricing periods earlier than the maturity of the borrowing.

ECNZ's remaining financial assets and liabilities have the same repricing and maturity profiles and are not interest rate sensitive.

The interest repricing profile for ECNZ is as follows:

1996 1995
$M $M
Within One Year 148 334
Between One and Two Years - 130
Between Two and Three Years - 11
Between Three and Four Years - 11
Between Four and Five Years - 11
Later than Five Years 566 635
714 1,132

DOMESTIC BOND PROGRAMME

ECNZ offers bonds to institutional and retail investors pursuant to its Domestic Bond Programme. Bonds outstanding have coupon interest rates ranging from 8% to 10% (1995: 8% to 10%) per annum and maturity dates between 2001 and 2009. The Bonds are issued under a Trust Deed dated 23 August 1988 made between ECNZ and The New Zealand Guardian Trust Company Limited as Trustee. Under the terms of the Trust Deed ECNZ has given a negative pledge that so long as any bond remains outstanding it will not, subject to certain exceptions, create or permit to exist any charge over any of its assets to secure any securities issued by it or any guarantee given by it of any securities issued by any other person unless the benefit of such charge is extended equally and rateably to the bonds or to any guarantee of the bond moneys given by it or there is provided to the bondholders such other security as may be approved by an extraordinary resolution of bondholders.

NEGATIVE PLEDGE

In addition to the negative pledge given in the Trust Deed for ECNZ bonds dated 23 August 1988, ECNZ has given undertakings that it will not create or permit to exist any security interest on its assets as security for any other indebtedness except on the conditions specified in the undertakings and/or with the prior consent of the lenders concerned (as the case may be).

11. DEFERRED TAXATION

1996 1995
Deferred Taxation at Start of Year 192 193
On Surplus for the Year (note 4) (63) (1)
Deferred Tax effect of Fair Valuation (note 27) 161 -
Deferred Taxation at End of Year 290 192


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✨ LLM interpretation of page content

🏭 Electricity Corporation Financial Position (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Term Liabilities, Bonds, Interest Rate Swaps, Deferred Taxation