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Notes to the financial statements
continued
for the year ended 30 September 2015
180
Tiger Brands Limited integrated annual report
2015
37 Financial instruments
continued
37.3 Interest rate risk management
continued
The following spot rates were used to translate financial instruments denominated in foreign currency:
(R’million)
Fixed
rate
Floating
rate
Total
Average
interest
rate for
the year
(%)
GROUP
2014
Local currency denominated loans
Loan repayable by 2015 (secured)
118,8
–
118,8
8,4
Loan repayable by 2015 (unsecured)
500,0
500,0
6,0
Other loans and capitalised finance leases
–
(secured and unsecured)
–
7,0
7,0
8,8
618,8
7,0
625,8
Foreign currency denominated loans
Loan repayable by 2013 (secured)*
–
169,3
169,3
6,8
Loan repayable by 2014 (secured)
–
17,3
17,3
8,0
Loan repayable by 2014 (unsecured)
–
5,4
5,4
4,0
Loan repayable by 2016 (secured)
–
39,0
39,0
12,0
Loan repayable by 2016 (secured)
–
178,8
178,8
14,8
Loan repayable by 2016 (secured)
–
226,5
226,5
15,0
Loan repayable by 2016 (secured)
–
29,1
29,1
16,3
Loan repayable by 2016 (unsecured)
–
185,9
185,9
15,0
Loan repayable by 2017 (secured)
–
16,0
16,0
7,0
Loan repayable by 2018 (secured)
–
69,1
69,1
7,0
Loan repayable by 2056 (secured)
–
1,1
1,1
–
937,5
937,5
Total
618,8
944,5 1 563,3
*Loans at a company level.
Interest rate sensitivity
The sensitivity analysis addresses only the floating interest rate exposure emanating from the net cash position. The
interest rate exposure has been calculated with the stipulated change taking place at the beginning of the financial
year and held constant throughout the reporting period.
If interest rates had increased/(decreased) by 1% and all other variables were held constant, the profit for the year
ended would increase/(decrease) as detailed in the table below due to the use of the variable interest rates applicable
to the long-term borrowings and short-term borrowings. The fixed interest rate on the borrowings would not affect the
financial performance. Any gain or loss would be unrealised and consequently the notional impact is not presented.