✨ Financial Statements and Commitments
Vector Limited & Subsidiaries
Gas Distribution Activities
Notes to the Financial Statements
For the year ended 30 June 2006
15. COMMITMENTS
The following amounts have been committed to but not recognised in the financial statements.
| 2006 | |
|---|---|
| $000 | |
| Capital expenditure commitments | |
| Estimated capital expenditure contracted for at balance date but not provided | 1,668 |
| 2005 | |
| $000 | |
| 4,167 |
Operating lease commitments
| 2006 | |
|---|---|
| $000 | |
| Within one year | 636 |
| One to two years | 531 |
| Two to five years | 1,211 |
| Beyond five years | 139 |
| 2,517 |
| 2005 | |
|---|---|
| $000 | |
| Within one year | 539 |
| One to two years | 472 |
| Two to five years | 847 |
| Beyond five years | 90 |
| 1,948 |
16. 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.
| 2006 Weighted average interest rate | 2006 Face value $000 | 2005 Weighted average interest rate | 2005 Face value $000 | |
|---|---|---|---|---|
| Bank loans | 7.77% | 69,704 | 7.30% | 132,676 |
| Working capital loan | 7.50% | 5,156 | 6.95% | 5,876 |
| Medium term notes - fixed rate NZ$ | 6.50% | 25,486 | 6.50% | 25,550 |
| Medium term notes - floating rate A$ | 6.15% | 72,691 | 6.24% | 72,691 |
| Capital bonds | 8.25% | 39,245 | 9.75% | 39,245 |
| Fixed interest rate bonds | 6.81% | 25,363 | 6.81% | 25,363 |
| Private placement senior notes | 5.65% | 53,439 | 5.65% | 53,439 |
| NZ floating rate notes | 7.86% | 119,623 | 8.51% | 45,274 |
| Total | 410,707 | 400,114 |
Next Page →
Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2006, No 154
Gazette.govt.nz —
NZ Gazette 2006, No 154
✨ LLM interpretation of page content
💰
Vector Limited & Subsidiaries Gas Distribution Financial Position
(continued from previous page)
💰 Finance & RevenueFinancial Statement, Commitments, Capital Expenditure, Operating Lease, Interest Rate Risk, Financial Instruments