✨ Financial Notices
15 SEPTEMBER NEW ZEALAND GAZETTE 2885
Contracts have been entered into with various counterparties having such credit ratings and in accordance with such dollar limits as set by the Board of Directors. The company does not require collateral or other security to support financial instruments with credit risk. While the company may be subject to credit losses up to the notional principal or contract amounts in the event of non performance by its counterparties, it does not expect such losses to occur.
The notional principal or contract amounts outstanding at 31 March were as follows:
| 1999 $000's | 1998 $000's | |
|---|---|---|
| Interest rate swaps and FRA's | 50,000 | 76,000 |
For interest rate swaps, FRA's and options contracts, the cash requirements are limited to interest payable or receivable which was a net payable amount of $284,389 as at 31 March 1999 ($333,515 receivable in 1998) and was included as part of net current liabilities as at that date.
Concentration of Credit Risk
Financial instruments which potentially subject the company to concentrations of credit risk consist principally of cash and short term investments, trade and notes receivable and various off-balance sheet instruments. The company places its cash and short term investments with high credit quality financial institutions and sovereign bodies and limits the amount of credit exposure to any one financial institution in accordance with its treasury policy. Due to the sale of the electricity retail business, there is a large concentration of credit risk to TransAlta NZ. At 31 March 1999 there was no material trade account receivable from that party.
- MANDATORY SUBORDINATED CONVERTIBLE NOTES
The notes were issued on the same terms as contained in the Company’s approved 1993 Establishment Plan. The notes are subordinated and so rank behind all secured and unsecured creditors. Interest on the notes is payable quarterly in arrears at 1.0% above the 90 day bank bill rate applicable at the commencement of that quarter. The notes are convertible into either ordinary shares or redeemable preference shares under the terms of the Convertible Note Deed dated 30 April 1993. The notes were held in the following proportions as at 31 March 1998 and 1999:
Christchurch City Holdings Limited 87.625%
Selwyn Council Trading Enterprises Limited 10.725%
Banks Peninsula District Council 1.650%
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100.000%
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VUW Te Waharoa —
NZ Gazette 1999, No 121
NZLII —
NZ Gazette 1999, No 121
✨ LLM interpretation of page content
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Off-Balance Sheet Risk and Interest Rate Hedge Contracts
(continued from previous page)
💰 Finance & RevenueOff-Balance Sheet Risk, Interest Rate Hedge, Market Risk, Interest Rate Swaps, Credit Risk, Financial Instruments
💰 Mandatory Subordinated Convertible Notes
💰 Finance & RevenueSubordinated Convertible Notes, Interest Payments, Convertible Note Deed, Shareholdings