✨ Financial Instruments Details
4026 NEW ZEALAND GAZETTE, No. 159 29 NOVEMBER 2010
TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS
The notional gross contract amounts of interest rate swaps outstanding at balance date, by maturity banding, are:
| 2010 | 2009 | |
|---|---|---|
| $000 | $000 | |
| Within one year | 102,000 | 170,000 |
| One to two years | 14,500 | 100,000 |
| Two to five years | 813,750 | 211,500 |
| Greater than five years | 2,819,000 | 3,354,500 |
| Total interest rate swaps | 3,749,250 | 3,836,000 |
Basis swaps
Basis swaps are used to eliminate currency risk when Transpower issues bonds in a foreign currency. In a basis swap, Transpower receives the offshore currency floating interest rate and pays the New Zealand dollar floating interest rate (BKBM). By undertaking basis swaps, foreign currency denominated debt is effectively converted into a BKBM exposure.
The notional gross contract amounts of basis swaps outstanding at balance date, by maturity banding are:
| 2010 | 2009 | |
|---|---|---|
| $000 | $000 | |
| Within one year | - | - |
| One to two years | - | - |
| Two to five years | - | - |
| Greater than five years | - | 25,000 |
| Total basis swaps | - | 25,000 |
Interest rate options
Transpower enters into interest rate options to manage interest rate re-pricing risk. Transpower purchases interest rate options to manage the impact on finance costs arising from floating rate debt if interest rates were to rise in the future. In the normal course of interest rate management, the sale of interest rate options is restricted by the requirement to simultaneously purchase an interest rate option.
The notional gross contract amounts of interest rate options outstanding at balance date, by maturity banding, are:
| 2010 | 2009 | |
|---|---|---|
| $000 | $000 | |
| Within one year | - | - |
| One to two years | - | - |
| Two to five years | - | - |
| Greater than five years | - | 100,000 |
| Total interest rate options | - | 100,000 |
Foreign exchange forward contracts
Transpower uses foreign exchange forward contracts to fix or offset the New Zealand dollar cost of foreign denominated capital equipment and stock purchases.
The notional gross contract amounts of foreign exchange forward contracts outstanding at balance date, by maturity banding, are:
| 2010 | 2009 | |
|---|---|---|
| $000 | $000 | |
| Within one year | 139,359 | 55,297 |
| One to two years | 136,448 | - |
| Two to five years | 21,090 | - |
| Greater than five years | - | - |
| Total foreign exchange forward contracts | 296,897 | 55,297 |
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NZ Gazette 2010, No 159
✨ LLM interpretation of page content
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Transpower New Zealand Limited Financial Statements
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🏭 Trade, Customs & IndustryFinancial Risks, Interest Rate Swaps, Basis Swaps, Interest Rate Options, Foreign Exchange Forward Contracts, Notional Gross Contract Amounts, Maturity Banding, Currency Risk, Hedging, Financial Instruments