Financial Statements Notes to the Financial Statements 21. DERIVATIVE ASSETS AND LIABILITIES (continued) Nominal value Fair value 2024 2023 2024 2023 RM’mil RM’mil RM’mil RM’mil Derivatives at fair value through profit or loss − Foreign exchange forward contracts 358 2,298 54 60 − Cross currency swaps 145 373 (6) 192 − Interest rate swaps – 70 – * Derivatives used for hedging − Interest rate caps 1,031 1,129 3 4 − Interest rate swaps 1,455 923 4 (9) − Cross currency interest rate swaps 271 286 92 84 − Cross currency swaps 1,396 – 12 – 4,656 5,079 159 331 * Denotes balances of less than RM 1 million The Group enters into interest rate caps, interest rate swaps, cross currency interest rate swaps, cross currency swaps and foreign exchange forward contracts to manage interest rate fluctuations and exchange rate fluctuations on certain loans, as set out in note 32(vi) and (vii). Offsetting financial assets and financial liabilities The Group’s derivative transactions are entered into under International Swaps and Derivatives Association (“ISDA”) master netting agreements. In general, under such agreements, the amounts owed by each counterparty in respect of the same transactions outstanding in the same currency under the agreement are aggregated into a single net amount that is payable by one party to the other. In certain circumstances, for example when a credit event such as a default occurs, all outstanding transactions under the agreement are terminated, the termination value is assessed and only a single net amount is due or payable in settlement of all outstanding transactions. The above agreements do not meet the criteria for offsetting in the statement of financial position as the right to set-off recognised amounts is enforceable only following an event of default, insolvency or bankruptcy of the Group or the counterparties. In addition, the Group and its counterparties do not intend to settle on a net basis or to realise the assets and settle the liabilities simultaneously in its normal course of business. IHH Healthcare Berhad | Annual Report 2024 176
RkJQdWJsaXNoZXIy NDgzMzc=