✨ Financial Statements Notes
NEW ZEALAND GAZETTE
No. 162
TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2003
20. FINANCIAL INSTRUMENTS continued
e) Financial instruments which manage currency, interest rate and liquidity risk
The Transpower Board of Directors have authorised the use of the following financial instruments to manage currency risk, interest rate risk and liquidity risk:
On Balance Sheet financial assets and liabilities
Term debt
The Transpower Group has five active debt facilities; a European Commercial Paper Program, Euro Medium Term Note Program, a Domestic Medium Term Note Program, an Australian Medium Term Note Program and a Domestic Multi-option Facility. The Group uses these facilities to issue debt securities into different global debt markets.
In the event the Transpower Group is unable to use these facilities the Group has established two committed credit facilities. One facility is a NZ$500,000,000 Multi-option Facility with a syndicate of domestic and offshore banks. This was not used at 30 June 2003 or 30 June 2002. The second facility is a Standby Facility for NZ$250,000,000 which was not used at 30 June 2003. At June 2002 this facility was US$75,000,000 (NZ$152,594,000) and was also unused.
Term investments
The Transpower Group from time to time invests surplus cash arising from its core operations and from active liquidity management in wholesale bank deposits and securities for periods of up to one year.
Off Balance Sheet financial assets and liabilities
Interest rate swaps
Interest rate swaps are used to change the interest rate structure on physical debt issued by the Group. The interest rate on debt is either converted from floating rate to fixed rate or vice versa through entering into an interest rate swap. In the normal course of the Group’s hedging activities interest rate swaps are entered into for periods of up to ten years.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2003, No 162
Gazette.govt.nz —
NZ Gazette 2003, No 162
✨ LLM interpretation of page content
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Transpower New Zealand Limited Lines Business Notes to the Financial Statements
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial statements, Financial instruments, Currency risk, Interest rate risk, Liquidity risk, Debt facilities, Term investments, Interest rate swaps