220 REDISCOVER | REBUILD | SUSTAIN Notes to the financial statements - 31 December 2015 18. Other financial assets and financial liabilities (cont’d.) (b) Derivative assets/liabilities Group 2015 2014 RM’000 RM’000 Derivative assets Current: Currency hedge - effective hedges (i) 525 246 Non-current: Interest rate swaps (“IRS”) - effective hedges (ii) 976 – Derivative liabilities Non-current: Interest rate swaps (“IRS”) - effective hedges (iii) 1,931 – (i) At 31 December 2015, the Group held forward currency contracts designated as hedges of expected future receipts and payments denominated in United States Dollars and Sterling Pounds. The forward currency contracts are being used to hedge the foreign currency risk of the highly probable forecasted transactions. The net notional amount of this currency hedging arrangement as at 31 December 2015 was RM136,991,000 (2014: RM50,324,000). (ii) On 22 June 2015, the Group entered into a USD300.0 million interest rate swap arrangement to hedge 50% of its subsidiary’s outstanding USD term loan facility. Under this arrangement, the Group pays fixed interest rate of 1.31% + 1.05% per annum and receives cash flows at floating rates. The notional amount of the interest rate swap arrangement as at 31 December 2015 was RM1,288,200,000 and will mature on 20 September 2018. (iii) During the year, the Group entered into a USD52.5 million interest rate swap arrangement to hedge 26% of its subsidiary’s USD term loan facility. Under this arrangement, the Group pays fixed interest rate of 1.90% per annum and receives cash flows at floating rates. The notional amount of the interest rate swap arrangement as at 31 December 2015 was RM225,492,000 and will mature on 6 May 2022.
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