RAND WATER ANNUAL REPORT 2023

Consolidated Annual Financial Statements for the year ended 30 June 2023

Notes to the Consolidated Annual Financial Statements 42. Financial instruments (Continued)

As at 30 June 2023 the Group has the following facilities:

Figures in Rand thousand

Facility amount

Total utilised

Total unutilised

Banks (Committed facilities)

1 250 000

-

1 250 000

DMTN

10 000 000 4 384 986 5 615 014 11 250 000 4 384 986 6 865 014

Figures in Rand thousand Contractual maturity profile of financial liabilities at 30 June 2023:

Six months to one year

One year to Three years

Three years to Five years

Over 5 years

Total

Unsecured bond: RW23 Unsecured bond: RW28 Unsecured bond: RW31 Unsecured bond: RWL26 Unsecured bond: RWL28 Trade and other payables Figures in Rand thousand Interest Rate (%) Unsecured bond: RW23 Unsecured bond: RW28 Unsecured bond: RW31 Unsecured bond: RWL26 Unsecured bond: RWL28

1 230 167

- - -

- - - -

-

1 230 167

- - - -

1 446 363 1 446 363 543 800 543 800

585 846

- - -

585 846 578 810

- -

578 810

3 627 580 3 627 580 4 857 747 585 846 578 810 1 990 163 8 012 566 -

2023

2022

Fixed rate Fixed rate Fixed rate

9.510

9.510

10.245 10.685 10.750

10.245 10.685

Floating rate

7.258 9.705

Fixed rate

9.705

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in market conditions. This comprise of three types of risk: interest rate risk, foreign currency risk and price risk. The objective of market risk management is to protect the Group’s net income against adverse market movements through the active management of interest rate, foreign currency and price risks, within approved policy parameters. The Group’s market risk management is centralised with the Treasury Department and is governed by the Treasury Policy, specified within this policy are the parameters that interest rate risk and foreign currency risk, are evaluated from. As with all risk management policies of the Group, the Treasury Policy resides under the authority of the Board. Foreign currency risk The Foreign currency risk arises mainly as a result of the Group’s CAPEX and operational expenditure programmes, where goods are imported from foreign countries and are exposed to currency fluctuations.

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