NOTES TO THE
FINANCIAL STATEMENTS
Year ended 31 December 2014
24 FINANCIAL INSTRUMENTS (CONT’D)
Exposure to interest rate risk (cont’d)
At the reporting date, the interest rate profile of the interest-bearing financial instruments was as follows:
Group and Trust
Nominal amount
2014
2013
$’000
$’000
Variable rate instruments
Interest rate swaps (including forward starting interest rate swap)
538,642
537,755
Cross currency interest rate swap
75,188
–
Loans and borrowings
(586,682)
(503,677)
27,148
34,078
The Group does not have any fixed rate instruments as at 31 December 2014 and 2013.
Fair value sensitivity analysis for fixed rate instruments
The Group does not account for any fixed rate financial assets at fair value through profit or loss. Therefore a
change in interest rates at the reporting date would not affect profit or loss and equity.
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates at the reporting date would have increased/ (decreased) Statement
of Total Return and Unitholders’ funds by the amounts shown below. This analysis assumes that all other variables,
in particular foreign currency rates, remain constant.
Statement of
Total Return
Unitholders’
Funds
100 bp
increase
100 bp
decrease
100 bp
increase
100 bp
decrease
Group and Trust
$’000
$’000
$’000
$’000
31 December 2014
Loans and borrowings
(5,867)
5,867
–
–
Interest rate swaps
3,252
(3,252)
10,458
(12,901)
Cross currency interest rate swap
752
(752)
4,115
(4,394)
Cash flow sensitivity (net)
(1,863)
1,863
14,573
(17,295)
31 December 2013
Loans and borrowings
(5,037)
5,037
–
–
Interest rate swaps
3,999
(3,999)
7,933
(9,110)
Cash flow sensitivity (net)
(1,038)
1,038
7,933
(9,110)
139
A N N U A L R E P O R T 2 0 1 4
