12. Derivative financial instruments (cont’d)
(ii) Interest rate swaps
The Group entered into interest rate swap agreements to hedge its interest rate risk on interest-bearing loans and borrowings
(Note 17). As at 30 June 2015, the terms of these contracts and the fair value adjustments on these interest rate swaps are
as follows:
Current
Interest rate swap
notional
Fair value adjustments
agreements
Maturity dates Floating rate Fixed rate amount
Assets Liabilities
%
% $’000
$’000
$’000
Group
2015
United States Dollar loans
1 March 2018
– 1 November 2019 0.17 – 0.19 1.27-1.42 112,620
–
(873)
2014
United States Dollar loans
23 September 2014 0.15 – 0.19
1.97
625
–
(2)
The interest rate swaps entered have the same principal terms as the interest-bearing loans and borrowings. For cash flow
hedges which were assessed to be effective, fair value losses of $873,000 (2014: losses of $2,000) were included in the
Group’s hedging reserves.
NOTES TO THE FINANCIAL
STATEMENTS
For the financial year ended 30 June 2015
ASL Marine Holdings Ltd. /Annual Report 2015
128
