244
PERENNIAL REAL ESTATE HOLDINGS LIMITED
Annual Report 2015
NOTES TO THE FINANCIAL STATEMENTS
26 FINANCIAL INSTRUMENTS
(continued)
Currency risk
(continued)
Group
Profit or loss
Period from
1/7/2014 to Year ended
31/12/2015
30/6/2014
$’000
$’000
USD (5% strengthening)
(240)
–
RMB (5% strengthening)
(2,716)
–
USD (5% weakening)
240
–
RMB (5% weakening)
2,716
–
Interest rate risk
Risk management policy
Interest rate risk is the risk that the fair value or future cash flows of the financial instruments will fluctuate because of
changes in market interest rates.
The Group manages its interest rate exposure by entering into a mixture of fixed rate instruments and variable rate instruments.
Exposure to interest rate risk
At the reporting date, the interest rate profile of the Group’s interest-bearing financial instruments was as follows:
Group
Company
Nominal amount
Nominal amount
Note 31/12/2015
30/6/2014 31/12/2015
30/6/2014
$’000
$’000
$’000
$’000
Fixed rate instruments
Loans and borrowings
12
(450,000)
–
(300,000)
–
Variable rate instruments
Loans to subsidiaries
31
–
–
214,541
–
Interest in associates – Junior bonds
49,920
–
–
–
Cash and cash equivalents
11
162,030
2,730
26,545
1,167
Loans and borrowings
12 (1,476,214)
–
–
–
Junior bonds
13
(144,042)
–
–
–
(1,408,306)
2,730
241,086
1,167
