New Zealand Gazette – 2005 – No. 147

Page 3620

✨ Financial Statements



3620

NEW ZEALAND GAZETTE, No. 147

30 AUGUST 2005

Vector Limited

Electricity Lines Business

Notes to the Financial Statements

For the year ended 31 March 2005

23. FINANCIAL INSTRUMENTS (CONTINUED)

The weighted average interest rates of interest rate swaps and cross currency swaps are as follows.

2005 Weighted average interest rate 2005 Face value $000 2004 Weighted average interest rate 2004 Face value $000
Interest rate swaps floating to fixed
Maturing in less than 1 year 7.11% 87,452 7.06% 135,431
Maturing between 1 and 2 years 7.30% 104,109 7.00% 105,806
Maturing between 2 and 5 years 6.87% 291,506 6.91% 452,848
Maturing after 5 years 5.71% 33,315 6.69% 67,715
516,382 761,800
Interest rate swaps fixed to floating
Maturing between 2 and 5 years 6.50% 166,575 - -
Forward starting interest rate swaps
Floating to fixed maturing between 2 and 5 years 6.70% 166,575 6.70% 169,369
Floating to fixed maturing after 5 years 6.61% 116,602 - -
Fixed to floating maturing between 2 and 5 years - - 6.50% 169,369
283,177 338,738
Cross currency swaps (pay leg) - floating 7.56% 825,968 6.04% 481,871
Cross currency swaps (receive leg) - floating 5.81% 825,968 6.02% 481,871

Bank loans, working capital loans, A$ medium term notes are based on floating rates. A portion of the bank loans are hedged through interest rate swaps which convert the floating rate into a fixed rate.

The A$ medium term notes are hedged through cross currency swaps (eliminating the foreign currency risk) and interest rate swaps.

The US$ privately placed senior notes are hedged through cross currency swaps (eliminating the foreign currency risk).

The forward starting interest rate swaps (fixed to floating) are to convert the fixed interest rate borrowings to floating rates.

The forward starting interest rate swaps (floating to fixed) are to hedge future forecasted floating rate debt.

FOREIGN EXCHANGE RISK

During the year, Vector Limited privately placed US$ senior notes with US investors. These notes are hedged with cross currency swaps thereby eliminating the foreign exchange currency risk.

In this reporting period, transactions have been conducted in foreign currencies for the purposes of protecting the NZ$ value of capital expenditure.

At balance date there is no significant exposure to foreign currency risk.



Next Page →



Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2005, No 147


Gazette.govt.nz — PDF NZ Gazette 2005, No 147




✨ LLM interpretation of page content

🏭 Vector Limited's Financial Position (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Interest Rate Swaps, Cross Currency Swaps, Foreign Exchange Risk, Hedging