✨ Financial Statements
Vector Limited
Electricity Lines Business
Notes to the Financial Statements
For the year ended 31 March 2005
23. FINANCIAL INSTRUMENTS
A comprehensive treasury policy approved by the board of directors is used to manage financial instrument risks. The policy outlines the objectives and approach that the Vector group will adopt in its treasury management processes. The policy covers, among other things, management of credit risk, interest rate risk, funding risk, liquidity risk, currency risk and operational risk.
Interest rate risk
Interest rate exposures are actively managed in accordance with treasury policy. In this respect, at least forty percent of all debt must be at fixed interest rates or effectively fixed using interest rate swaps, forward rate agreements, options and other derivative instruments.
The weighted average rates of borrowings are as follows.
| 2005 Weighted average interest rate | 2005 Face value $000 | 2004 Weighted average interest rate | 2004 Face value $000 | |
|---|---|---|---|---|
| Bank Loans | 7.22% | 200,367 | 6.00% | 567,387 |
| Working Capital loans | 6.90% | 25,046 | 5.62% | 44,883 |
| Medium term notes – fixed rate NZ$ | 6.50% | 166,497 | 6.50% | 168,647 |
| Medium term notes – floating rate A$ | 5.92% | 475,053 | 6.02% | 481,871 |
| Capital bonds | 9.75% | 256,474 | 9.75% | 260,155 |
| Private placement senior notes | 5.65% | 349,236 | - | - |
| Total | 1,472,673 | 1,522,943 |
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2005, No 147
Gazette.govt.nz —
NZ Gazette 2005, No 147
✨ LLM interpretation of page content
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Vector Limited's Financial Position
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🏭 Trade, Customs & IndustryFinancial Statements, Provisions, Commitments, Capital Bonds, Interest Rate Risk, Treasury Policy