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9. INTEREST-BEARING LOANS AND BORROWINGS
As at 30 June 2016 the Trust had the following borrowings:
June 2016
June 2015
Expiry date
Limit
$000
Amount drawn
$000
Limit
$000
Amount drawn
$000
Bank debt facilities
Australia and New Zealand Banking Group Limited
1 July 2018
110,000
81,400
110,000
94,300
Commonwealth Bank of Australia
31 July 2020
110,000
85,200
110,000
92,200
Westpac Banking Corporation
30 April 2020
135,000
105,700
135,000
99,200
355,000
272,300
355,000
285,700
Corporate bonds
Fixed term five-year corporate bond
27 May 2019
200,000
200,000
200,000
200,000
Accrued/(prepaid) interest and borrowing costs
33
(299)
200,000
200,033
200,000
199,701
555,000
472,333
555,000
485,401
Recognition and measurement
The borrowings under the facilities are not secured by assets of the
Trust, but are subject to reporting and financial undertakings by the
Trust to the banks under negative pledge agreements with each bank.
Interest-bearing loans and borrowings
All interest-bearing loans and borrowings are initially recognised at
the fair value of the consideration received less directly attributable
transaction costs.
After initial recognition, interest-bearing loans and borrowings are
subsequently measured at amortised cost using the effective interest
method. Fees paid on the establishment of loan facilities that are
interest-bearing are included as part of the carrying amount of loans
and borrowings.
Borrowings are classified as non-current liabilities if the Trust has an
unconditional right to defer settlement of the liability for at least 12
months after the balance date.
Refer to Note 13 for information on interest rate and liquidity risk.
At 30 June 2016 the minimum duration of the above debt facilities
was 24 months (2015: 36 months) and the maximum was 49 months
(2015: 61 months) with a weighted average duration of 38.6 months
(2015: 50.3 months).
Corporate bonds
On 27 May 2014, the Trust issued $200 million fixed rate domestic
bonds maturing on 27 May 2019. Interest is payable semi-annually in
arrears on the fixed rate domestic bonds, at 4.58 per cent per annum.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
BWP Trust Annual Report 2016
38
Financial Report