/ 1 5 4
NOTES TO THE FINANCIAL STATEMENTS
C A M B R I D G E I N D U S T R I A L T R U S T
A N N U A L R E P O R T 2 0 1 5
25.
Financial instruments (Cont’d)
Interest rate risk
The Group’s exposure to changes in interest rates relate primarily to its interest-bearing financial liabilities. Interest
rate risk is managed by the Manager on an ongoing basis with the primary objective of limiting the extent to
which net interest expense could be affected by adverse movements in interest rates. The Group adopts a policy
of ensuring that the majority of its exposures to changes in interest rates on borrowings is on a fixed-rate basis.
This is achieved by entering into interest rate swaps and fixed rate borrowings.
(a)
Effective interest rates and repricing analysis
In respect of interest-earning financial assets and interest-bearing financial liabilities, the following table
indicates the effective interest rates as at 31 December 2015 and 31 December 2014 and the periods at
which they reprice.
Group
Effective
interest rate
Floating
interest
Fixed interest
rate maturing
within
1 to 5 years
Fixed interest
rate maturing
more than
5 years
Total
% $’000
$’000
$’000
$’000
2015
Financial liabilities
Interest-bearing borrowings
– S$ variable rate
2.58 100,000
–
–
100,000
– S$ fixed rate
3.60
–
100,000
–
100,000
– S$ variable rate
2.82
13,500
–
–
13,500
Medium Term Notes
– S$ fixed rate notes
4.10
–
30,000
–
30,000
– S$ fixed rate notes
3.50
–
155,000
–
155,000
– S$ fixed rate notes
3.95
–
130,000
–
130,000
113,500
415,000
–
528,500
Financial assets
Derivative financial
instruments
0.88
–
604
–
604
2014
Financial liabilities
Interest-bearing borrowings
– S$ variable rate
2.67 200,000
–
–
200,000
– S$ variable rate
2.00 100,000
–
–
100,000
Medium Term Notes
– S$ fixed rate notes
4.75
–
50,000
–
50,000
– S$ fixed rate notes
4.10
–
–
30,000
30,000
– S$ fixed rate notes
3.50
–
100,000
–
100,000
300,000
150,000
30,000 480,000
Financial assets
Derivative financial
instruments
0.73
–
287
–
287
