25 FINANCIAL INSTRUMENTS (continued) Market risk (continued) Interest rate risk (continued) 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 Nominal amount Company Nominal amount Note 2023 2022 2023 2022 $’000 $’000 $’000 $’000 Fixed rate instruments Loans to joint ventures 7 99,520 94,400 – – Trade and other receivables 9 – 21,482 – – Loans to subsidiaries 29 – – 203,060 – Cash and cash equivalents 11 124,855 33,736 – – Loans and borrowings 12 (96,750) (96,750) (77,750) (77,750) Trade and other payables 14 (199,688) (103,426) (199,688) – Lease liabilities 30 (223) (547) (223) (547) (72,286) (51,105) (74,601) (78,297) Variable rate instruments Loans to subsidiaries 29 – – 162,482 180,954 Trade and other receivables 9 31,659 32,128 – – Cash and cash equivalents 11 91,567 61,034 634 912 Loans and borrowings 12 (3,066,372) (3,233,079) – – Junior bonds 13 – (30,000) – – Trade and other payables 14 – – (252,704) (186,977) (2,943,146) (3,169,917) (89,588) (5,111) Fair value sensitivity analysis for fixed rate instruments The Group does not account for any fixed rate financial assets and liabilities at FVTPL. Therefore, a change in interest rates at the reporting date would not affect profit or loss. Cash flow sensitivity analysis for variable rate instruments An increase of 10 basis points in the interest rates at the reporting date would have decreased profit or loss (before any tax effects) by $2.9 million (2022: $3.2 million) and by an insignificant amount (2022: an insignificant amount) for the Group and the Company respectively. This analysis assumes that all other variables, in particular foreign currency rates, remain constant. A decrease of 10 basis points in the interest rates at the reporting date would have had the equal but opposite effect, on the basis that all other variables remain constant. Notes to the Financial Statements Year ended 31 December 2023 208 PERENNIAL HOLDINGS PRIVATE LIMITED
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