18. Derivative instruments
 

Derivative instruments comprise interest rate swaps and zero cost collars. The interest rate swaps are used to fix the interest rates on long-term debt facilities and corporate bonds, while the zero cost collars are used to fix the exchange rate in advance of the receipt of dividends from Hyprop Mauritius and Hystead.

      2018
R000
  2017
R000
 
Opening balance at 1 July        (47 153)    (51 889)   
Foreign exchange movement        (330)    10 748    
Additions        5 850     (938)   
Disposals        (8 883)         
Fair value adjustment        32 118     (5 074)   
Balance at end of the year        (18 398)    (47 153)   
Standard Bank of South Africa Limited                   
Assets                   
   Non-current  Interest rate swap     6 017          
   Current  Interest rate swap     815          
Liabilities                   
   Non-current  Interest rate swap     (8 900)         
   Current  Interest rate swap     (277)    (18 086)   
   Current  Zero cost collars     (1 722)    (80)   
Rand Merchant Bank (RMB)                  
Assets                   
   Non-current  Interest rate swap     829          
   Current  Interest rate swap           9 530    
Liabilities                   
   Non-current  Interest rate swap     (1 380)    (13 194)   
   Current  Interest rate swap           (858)   
Nedbank Limited                  
Assets                   
   Non-current  Interest rate swap           785    
Liabilities                   
   Non-current  Interest rate swap     (13 780)    (25 250)   
         (18 398)    (47 153)   
Reconciliation to the statement of financial position                   
Non-current assets        6 846     785    
Current assets        815     9 530    
Non-current liabilities        (24 060)    (56 530)   
Current liabilities        (1 999)    (938)   
         (18 398)    (47 153)   

The valuation of the derivative instruments was determined by discounting the future cash flows using the JIBAR or LIBOR swap curve.

Financial institution Nominal
amount
  Fixed rate
payable
%
  Expiry
date
  Variable rate
receivable
 
Standard Bank R100 million   8,02   13/8/2018   Three-month JIBAR  
Standard Bank R100 million   8,04   11/11/2019   Three-month JIBAR  
Standard Bank R100 million   8,50   3/2/2020   Three-month JIBAR  
Standard Bank R450 million   7,85   30/10/2020   Three-month JIBAR  
Standard Bank R300 million   7,82   31/10/2023   Three-month JIBAR  
Standard Bank R100 million   7,85   27/5/2024   Three-month JIBAR  
RMB R200 million   7,73   18/9/2019   Three-month JIBAR  
Nedbank R250 million   8,54   2/1/2020   Three-month JIBAR  
Nedbank R250 million   8,29   2/1/2020   Three-month JIBAR  
Nedbank R500 million   7,43   4/1/2021   Three-month JIBAR  
Nedbank R250 million   7,21   1/2/2021   Three-month JIBAR  
Nedbank R500 million   7,61   1/9/2021   Three-month JIBAR  
Nedbank R500 million   7,55   1/10/2021   Three-month JIBAR  
tandard Bank USD17,8 million   4,26   13/11/2018   Quarterly Three-month LIBOR  
tandard Bank USD27,1 million   2,11   30/10/2020   Quarterly Three-month LIBOR  
RMB USD4,98 million   2,10   18/5/2020   Three-month LIBOR  

Further disclosure on the designation of the interest rate swaps and their risk mitigation role is provided in note 34 – Financial instruments – Fair values and risk management.