260 YINSON HOLDINGS BERHAD ACCOUNTABILITY 43. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) (a) Market risk (continued) (i) Interest rate risk (continued) Instruments used by the Group As at 31 January 2025, the swaps currently in place covered approximately 81% (2024: 90%) of the Group’s outstanding 3-month USD SOFR variable rate project financing loans and approximately 81% (2024: 70%) of the total carrying amount of the 3-month USD SOFR borrowings. These loans bear variable rates based on 3-month USD SOFR plus a certain margin, however the interest rates are fixed based on the fixed interest rates of the swaps which range between 3.89% to 8.56% (2024: 3.72% to 6.39%). The swap contracts require settlement of net interest receivable or payable every quarter. The settlement dates coincide with the dates on which interest is payable on the underlying debt. Effects of hedge accounting on the financial position and performance The effects of the above-mentioned interest rate swaps on the Group’s financial position and performance are as follows: 2025 RM million Interest rate swaps Carrying amount (current and non-current asset) 342 Notional amount 7,036 Hedge ratio of project financing loans 81% Change in fair value of outstanding hedging instruments since 1 February (17) Change in value of hedged item used to determine hedge effectiveness (17) Weighted average hedged rate for the year 3.89% to 8.56% 2024 RM million Interest rate swaps Carrying amount (current and non-current asset and non-current liability) 356 Notional amount 7,952 Hedge ratio of project financing loans 90% Change in fair value of outstanding hedging instruments since 1 February (21) Change in value of hedged item used to determine hedge effectiveness (21) Weighted average hedged rate for the year 3.72% to 6.39% The maturity period of interest rate swaps ranges from November 2027 to September 2039 (2024: August 2026 to December 2031).
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