Ann: Corporate Note Offering, page-13

Hi @zebra74,

I went back to the 2015 and 16 reports and I think the relevant comments are:

2015: Note 32: "The majority of new plant and equipment purchases are financed using hire purchase as described in the financial instrument Note 31. The average lease term is five years. Interest rates underlying all obligations under finance leases are fixed at respective contract dates ranging from 5.37% to 7.57% (2014: 5.56% to 11.08%)"

2016: Note 5.3: "... Interest rates underlying all obligations under finance leases are fixed at respective contract dates ranging from 5.37% to 7.48% (2015: 5.37% to 7.57%)."

so it looks like the effective rates have been falling. I just did a simple calc rate = P&L interest expense/(avg of start and end of year debt) calc and got 7.75% approx for the last 2 years. So I'm guessing no great saving, but less pressure to stick to a repayment schedule I thought. You mentioned they will amortise it but there's no pressure to do this to a particular schedule? I don't see any mention of anything about this in the announcement or do you know more about how this would work?

@sabine - re-reading the reports - seems like the there is a group of bankers led by ANZ (and they refer to ANZ Leasing providing the finance leases) so you are right about there being a bunch of bankers.