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Hyprop Investments Limited
Integrated annual report and consolidated financial statements
2017
123
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.
June 2017
R000
June 2016
R000
Opening balance as at 1 July
(51 889)
10 380
Foreign exchange movement
10 748
(6 722)
Additions
(938)
Acquisition of business combination
(2 365)
Fair value adjustment
(5 074)
(53 182)
Balance at end of year
(47 153)
(51 889)
Standard Bank of South Africa Limited
Assets
Non-current
Interest rate swap
7 260
Liabilities
Non-current
Interest rate swap
(18 086)
(5 236)
Current
Zero cost collar
(80)
Rand Merchant Bank (RMB)
Assets
Non-current
Interest rate swap
13 797
Current
Interest rate swap
9 530
Liabilities
Non-current
Interest rate swap
(13 194)
(84 371)
Current
Interest rate swap
(858)
Nedbank Limited
Assets
Non-current
Interest rate swap
785
28 252
Liabilities
Non-current
Interest rate swap
(25 250)
(11 592)
Current
Interest rate swap
(47 153)
(51 889)
Reconciliation to the statements of financial position
Non-current assets
785
49 309
Current assets
9 530
Non-current liabilities
(56 530)
(101 198)
Current liabilities
(938)
(47 153)
(51 889)
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
3-month JIBAR
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
R450 million
7,85% 30/10/2020
3-month JIBAR
Standard Bank
R300 million
7,82%
31/10/2023
3-month JIBAR
Standard Bank
R100 million
7,85%
27/5/2024
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
R500 million
7,43%
4/1/2021
3-month JIBAR
Nedbank
R250 million
7,21%
1/2/2021
3-month JIBAR
Nedbank
R500 million
7,61%
1/9/2021
3-month JIBAR
Nedbank
R500 million
7,55%
1/10/2021
3-month JIBAR
RMB
USD7,68 million
4,26%
6/5/2018
3-month LIBOR + 3,2%
RMB
USD1,64 million
1,27%
17/5/2018
3-month LIBOR
RMB
USD1,78 million
1,67%
17/5/2018
3-month LIBOR
RMB
USD4,50 million
4,47%
17/5/2018
3-month LIBOR + 3,2%
RMB
USD4,98 million
2,10%
18/5/2020
3-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.