Page 52 - NZPM Annual Report 2017

NZPM GROUP ANNUAL REPORT 2017

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 March 2017

15. LOANS AND BORROWINGS (CONTINUED)

(b) Interest rates

Interest was charged on secured bank loans throughout the year at an interest rate between 3.28% and
4.01% (2016: 3.76% and 5.58%). The bank overdraft base rate throughout the year was between 5.60% and
5.70% (2016: 5.70% and 9.45%).

(c) Finance lease liabilities
2017 2016
$’000 $’000
Repayable as follows:
Not later than one year 989 1,193
Later than one year and not later than five years 287 1,276
Future minimum lease payments 1,276 2,469

Less future finance charges (73) (234)
Present value of finance lease liabilities 1,203 2,235

The present value of the future minimum lease payments is repayable as follows:
Not later than one year 922 1,032
Later than one year and not later than five years 281 1,203
1,203 2,235

Security
Finance lease liabilities are secured by the assets leased. Finance leases relate to hardware and
software equipment.

Facility type
The hardware and the software have lease terms of 3 years and 6 years respectively. The interest rate for the
hardware is 6.0% and for software 9.9%. At the settlement date of the rental facility agreement, NZPM sold the
equipment to Quadrent Limited and agreed to rent the same back from Quadrent. At the conclusion of each
lease agreement the equipment is being purchased by NZPM.

16. DERIVATIVE FINANCIAL INSTRUMENTS

2017 2016
$’000 $’000

Interest rate swaps 736 1,217
Forward foreign exchange contracts (61) 40
675 1,257
Classified as:
Current (61) 40
Non-current 736 1,217
675 1,257
This note provides information about the contractual terms of the Group’s derivative financial instruments. For
more information about the Group’s exposure to interest rate and foreign currency risk, see note 20(a).

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