NOTES TO THE FINANCIAL STATEMENTS NOTE 18

18. Derivative instruments
  Derivative instruments comprise interest rate swaps.
      GROUP 
June 2016 
R000 
  GROUP 
June 2015 
R000 
 
Opening balance as at 1 July       10 380     (8 851)   
Foreign exchange movement         (6 722)    (325)   
Acquisition of business        (2 365)         
Fair value adjustment        (53 182)    19 556    
Balance at end of year        (51 889)    10 380    
Standard Bank of South Africa Limited                  
   Assets                  
   Non-current  Interest rate swap     7 260      8 795    
   Liabilities                  
   Non-current  Interest rate swap     (5 236)    (9 270)   
Rand Merchant Bank                  
   Assets                  
   Non-current  Interest rate swap     13 797     15 776    
   Liabilities                  
   Non-current  Interest rate swap     (84 371)    (21 605)   
Nedbank Limited                  
   Assets                  
   Non-current  Interest rate swap     28 252     28 561    
   Liabilities                  
   Non-current  Interest rate swap     (11 591)    (9 248)   
   Current  Interest rate swap          (2 629)   
Balance at end of year        (51 889)    10 380    
Reconciliation to the statements of financial position                  
Non-current assets        49 309     53 132    
Non-current liabilities        (101 198)    (40 123)   
Current liabilities             (2 629)   
Balance at end of year        (51 889)    10 380    

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 8,04% 11/11/2019 3-month JIBAR  
Standard Bank R100 million 8,50% 3/2/2020 3-month JIBAR  
Standard Bank R100 million 8,02% 13/8/2018 3-month JIBAR  
Standard Bank R100 million 7,85% 27/5/2024 3-month JIBAR  
Standard Bank R300 million 7,82% 31/10/2023 3-month JIBAR  
Standard Bank R450 million 7,85% 30/10/2020 3-month JIBAR  
RMB R300 million 5,83% 13/9/2017 3-month JIBAR  
RMB R450 million 5,87% 18/4/2018 3-month JIBAR  
RMB R200 million 7,73% 18/9/2019 3-month JIBAR  
Nedbank R250 million 8,54% 2/1/2020 3-month JIBAR  
Nedbank R250 million 8,29% 2/1/2020 3-month JIBAR  
Nedbank R250 million 7,21% 1/2/2021 3-month JIBAR  
Nedbank R500 million 7,43% 4/1/2021 3-month JIBAR  
Nedbank R500 million 7,55% 1/10/2021 3-month JIBAR  
Nedbank R500 million 7,61% 1/9/2021 3-month JIBAR  
RMB USD1,64 million 1,27% 17/5/2018 3-month JIBAR  
RMB USD1,78 million 1,67% 17/5/2018 3-month LIBOR  
RMB USD7,68 million 4,26% 6/5/2018 3-month LIBOR + 3,2%  
RMB USD4,98 million 2,10% 18/5/2020 3-month LIBOR  
RMB USD4,50 million 4,47% 17/5/2018 3-month LIBOR + 3,2%  

Further disclosure on the designation of the interest rate swaps and their risk mitigation role is provided in note 35 — Financial instruments — Fair values and risk management.


NOTES TO THE FINANCIAL STATEMENTS NOTE 18