Re interest rate risk - see pg 68 of the annual report: I doubt...

Re interest rate risk - see pg 68 of the annual report: I doubt they would exist if they didn't manage this carefully.

Interest rate risk
The Group's main interest rate risk arises from its borrowings and cash at the bank, both of which carry variable rates of
interest. The Group policy is to ensure that at least 60% of Group corporate borrowings are hedged into a fixed rate for the
term of the borrowing (unless approved by the Board). Non-securitised lease portfolio borrowings (other than where used to
fund leases in inertia or informal extension) are required to be hedged using an amortising swap profile that reflects the
expected repayment profile of the borrowings. Securitisation borrowings are similarly required to be hedged using an
amortising swap profile that reflects the expected repayment profile of the borrowings, in compliance with parameters agreed
with the financiers to the securitisation.

As at the reporting date, the Group had the following variable rate bank accounts and other facilities after impact of hedging
instruments:

2023; 2022
Balance Balance
Consolidated $'000; $'000

Cash at bank 92,848; 61,613
Securitisation accounts 140,961; 141,432
Secured deposits 26,605; 27,388
Bank loans (unhedged) (55,000); (55,000)

Net exposure to cash flow interest rate risk 205,414; 175,433

An official increase/decrease in interest rates of 100 (2022: 100) basis points would have a favourable/adverse effect on
profit before tax and equity of $2,054,000 (2022: $1,754,000) per annum. The percentage change is based on the expected
volatility of interest rates using market data and analyst's forecasts.

Derivatives interest rate swap
The Group has entered into interest rate swap contracts with the following notional/principal values as at 30 June 2023:

● $246,660,000 (2022: $244,722,000) of bullet swaps maturing in September 2024 with a weighted average fixed rate of
0.65% (2022: 1.07%) in respect of corporate debt borrowings; and
● $1,328,158,000 (2022: $1,174,357,000) of amortising swaps with tenors of up to 5 years and a weighted average fixed
rate of 3.00% (2022: 1.31%), in relation to securitisation trusts.