✨ Financial Statements
28 NOVEMBER 2005
NEW ZEALAND GAZETTE, No. 197
4957
Vector Limited & Subsidiaries
Gas Distribution Activities
Notes to the Financial Statements
For the year ended 30 June 2005
18. COMMITMENTS
The following amounts have been committed to but not recognised in the financial statements.
| Capital expenditure commitments | 2005 $000 | 2004 $000 |
|---|---|---|
| Estimated capital expenditure contracted for at balance date but not provided | 4,167 | 2,708 |
Operating lease commitments
| Within one year | 539 | 403 |
| One to two years | 472 | 389 |
| Two to five years | 847 | 1,092 |
| Beyond five years | 90 | 88 |
| Total commitments | 1,948 | 1,972 |
19. FINANCIAL INSTRUMENTS
The Vector group has a comprehensive treasury policy approved by the board of directors to manage the risks of financial instruments. 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
The Vector group actively manages interest rate exposures 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 $000 | |
|---|---|---|---|---|
| Bank loans | 7.30% | 132,676 | - | - |
| Working capital loans | 6.95% | 5,876 | 6.10% | 11,239 |
| Medium term notes | ||||
| Fixed rate NZ$ | 6.50% | 25,550 | - | - |
| Floating rate A$ | 6.24% | 72,691 | 6.05% | 231,582 |
| Capital bonds | 9.75% | 39,245 | - | - |
| Fixed interest rate bonds | 6.81% | 25,363 | - | - |
| Private placement senior notes | 5.65% | 53,439 | - | - |
| Pre-IPO equity securities | 8.51% | 45,274 | - | - |
| 400,114 | 242,821 |
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2005, No 197
Gazette.govt.nz —
NZ Gazette 2005, No 197
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Vector Limited & Subsidiaries Gas Distribution Activities Financial Position
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