p 237 MISC BERHAD - Annual Report 2014 18. Other financial assets and financial liabilities (cont’d.) (b) Derivative assets/liabilities Group 2014 2013 RM’000 RM’000 Derivative assets Current: Currency hedge - effective hedges (i) 246 1,344 Derivative liabilities Non-current: Interest rate swaps (“IRS”) - effective hedges (ii) – 4,230 (i) At 31 December 2014, the Group held forward currency contracts designated as hedges of expected future receipts and payments denominated in United States Dollars, Singapore Dollars, Euro and Sterling Pounds. The forward currency contracts are being used to hedge the foreign currency risk of the highly probable forecasted transactions. The notional amount of this currency hedging arrangement as at 31 December 2014 was RM50,324,000 (2013: RM79,936,000). (ii) On 27 May 2011, the Group entered into an interest rate swap hedging arrangement to hedge 90% of its subsidiary’s syndicated term loan facility. Under this arrangement, the Group pays fixed interest rate of 1.85% (2013: 1.85%) per annum and receives cash flows at floating rates. The hedging arrangement was terminated following early settlement of the syndicated term loan facility in the current financial year. The notional amount of the interest rate swap hedging arrangement as at 31 December 2013 was RM183,431,000.
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