Now to Debt and interest expense:Debt is $1,918m with $300m...

Now to Debt and interest expense:


Debt is $1,918m with $300m undrawn facilities giving a total debt facility of $2,226m


So none of that debt falls due this financial year.
And only $400m of the $1,918m of debt falls due in FY25.

So GOZ has two years (FY24 and FY25) to figure out how to tackle its debt. That gives GOZ reasonable optionality to plan.


GOZ current average cost of debt is 4.6% including the benefit of its interest rate hedges. As can be seen over time the interest rate hedges fall off and GOV will need to pay higher interest rates.

As of 30 June 2023, 70% of the interest rate is fixed. And most of this fixed debt carries through into FY24 (see above). So again GOZ has time to prepare.
If one wants to micro this, the follow chart helps:




The summary is:
FY24: no impact (all factored in, together with one more assumed RBA interest rate increase)
FY25: low impact
FY26: this impact really starts to hit.
BUT BY FY26, what will market interest rate be????
By FY26, the RBA should be reducing interest rates. RBA has said its expectations is for interest rates to fall back to 2-3% by end of FY25. If so, current interest rates will be higher than FY26 market interest rates!!!