✨ Financial Statements Notes
Vector Limited & Subsidiaries
Gas Distribution Activities
Notes to the Financial Statements
For the year ended 30 June 2006
16. FINANCIAL INSTRUMENTS (continued)
The weighted average interest rates of interest rate swaps and cross currency swaps are as follows.
| 2006 | 2006 | 2005 | 2005 | |
|---|---|---|---|---|
| Weighted average | Notional amount | Weighted average | Notional amount | |
| interest rate | $000 | interest rate | $000 |
Interest rate swaps floating to fixed
Maturing in less than 1 year | 7.22% | 10,374 | 7.30% | 27,410
Maturing between 1 and 2 years | 7.13% | 43,310 | 7.22% | 12,775
Maturing between 2 and 5 years | 6.79% | 43,829 | 6.73% | 51,006
Maturing after 5 years | 6.85% | 62,243 | 6.56% | 46,535
| | | 159,756 | | 137,726
Interest rate swaps fixed to floating
Maturing in less than 1 year | 6.50% | 25,486 | 6.50% | 25,550
Maturing between 2 and 5 years | 6.81% | 25,363 | 7.46% | 25,363
| | | 50,849 | | 50,913
Forward starting interest rate swaps
Floating to fixed maturing between 2 and 5 years | 6.70% | 11,930 | 6.70% | 31,891
Floating to fixed maturing after 5 years | 6.45% | 27,439 | 6.60% | 33,215
| | | 39,369 | | 65,106
Cross currency swaps (pay leg) | 7.69% | 126,131 | 7.65% | 126,131
Cross currency swaps (receive leg) | 5.94% | 126,131 | 5.39% | 126,131
Bank loans, working capital loans, A$ medium term notes and pre-IPO equity securities 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 (floating to fixed).
The NZ$ medium term notes are fixed interest rate notes. These notes are hedged by the interest rate swaps (fixed to floating).
Fixed interest rate bonds are at fixed interest rates. These notes are hedged by the interest rate swaps (fixed to floating).
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 NZ floating rate notes are hedged through interest rate swaps which convert the floating rate into a fixed rate.
The forward starting interest rate swaps (floating to fixed) are to hedge forecasted future floating rate debt.
FOREIGN EXCHANGE RISK
In this reporting period the group has conducted transactions in foreign currencies for the purpose of protecting the NZ$ value of capital expenditure.
At balance date the group has no significant exposure to foreign currency risk.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2006, No 154
Gazette.govt.nz —
NZ Gazette 2006, No 154
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Vector Limited & Subsidiaries Gas Distribution Financial Position
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💰 Finance & RevenueFinancial Statement, Commitments, Capital Expenditure, Operating Lease, Interest Rate Risk, Financial Instruments