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79
Cathay Pacific Airways Limited Annual Report 2005
27. Financial risk management (continued)
(d) Interest rate risk
Interest rate swaps are used to manage the interest rate profile of interest-bearing financial liabilities on a
currency by currency basis to maintain an appropriate fixed rate and floating rate ratio.
The table below indicates the effective interest rates of interest-bearing financial liabilities and interest-earning
financial assets as at the balance sheet date and the period in which they are repriced or mature whichever
is earlier:
2005
After one After two
Within year but years but After
Effective one within two within five five
Fixed/ interest year years years years Total
Floating rate (%) HK$M HK$M HK$M HK$M HK$M
Group
Bank loans Floating 3.20 – 5.28 (4,839) – – – (4,839)
Other loans Fixed 0 – 7.00 (32) – (1,083) – (1,115)
Other loans Floating 2.68 – 2.83 (309) – – – (309)
Obligations under finance leases Fixed 1.64 – 8.75 (422) (1,305) (2,918) (10,659) (15,304)
Obligations under finance leases Floating 1.77 – 5.33 (11,027) – – – (11,027)
Pledged security deposits Fixed 3.25 – 8.75 570 811 1,307 7,347 10,035
Pledged security deposits Floating 4.07 104 – – – 104
Currency swap Floating 1.29 – 9.12 1,098 (78) (411) (398) 211
Interest rate swap Fixed 3.45 – 6.43 1,860 (702) (773) (385) –
Liquid funds Fixed 2.27 – – 23 – 23
Liquid funds Floating 0 – 7.45 13,436 – – – 13,436
Bank overdrafts Floating 0 – 9.25 (54) – – – (54)
2004
After one After two
Within year but years but After
Effective one within two within five five
Fixed/ interest year years years years Total
Floating rate (%) HK$M HK$M HK$M HK$M HK$M
Group
Bank loans Floating 0.71 – 5.07 (3,222) – – – (3,222)
Other loans Fixed 0 – 7.00 (314) – (33) – (347)
Other loans Floating 2.71 – 2.73 (425) – – – (425)
Obligations under finance leases Fixed 1.29 – 10.65 (732) (406) (3,305) (13,567) (18,010)
Obligations under finance leases Floating 1.80 – 6.77 (12,790) – – – (12,790)
Pledged security deposits Fixed 3.25 – 10.10 1,109 622 1,469 8,696 11,896
Pledged security deposits Floating 1.95 – 2.85 267 – – – 267
Interest rate swap Fixed 2.28 – 8.16 1,731 (362) (385) (984) –
Liquid funds Floating 0 – 6.43 11,474 – – – 11,474
Bank overdrafts Floating 0 (30) – – – (30)
Notes to the Accounts Supplementary Information