Cathay Pacific 2001 Annual Report Download - page 19

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Cathay Pacific Airways Limited Annual Report 2001 17
BORROWINGS AND
CAPITAL
컄Borrowings increased by 15.3% to
HK$24,024 million compared with
HK$20,838 million in 2000.
컄Borrowings are mainly denominated in US
dollar, Japanese yen, Sterling and Euro, and are
fully repayable by 2017 with 79% being at fixed
rates of interest.
컄Liquid funds, 83% of which are denominated
in US dollar, decreased by 11.6% to
HK$9,764 million.
컄Net borrowings increased by 44.4% to
HK$14,278 million.
컄The Group’s shareholders’ funds decreased by
4.6% to HK$31,308 million.
컄Net debt/equity ratio increased from 0.30 times
to 0.46 times.
FINANCIAL RISK
MANAGEMENT POLICY
컄In the normal course of business, the Group is
exposed to fluctuations in foreign currencies,
interest rates and jet fuel prices.
컄These exposures are managed, sometimes with
the use of derivative financial instruments, by
the Treasury Department of Cathay Pacific in
accordance with the Group’s approved policies
and parameters.
컄Derivative financial instruments are used solely
for financial risk management purposes and the
Group does not hold or issue derivative financial
instruments for trading purposes.
컄Derivative financial instruments which constitute
a hedge do not expose the Group to market
risk since any change in their market value will
be offset by a compensating change in the
HK$ million Times
Group net debt and equity
0100999897
Shareholders’ funds
Net borrowings
Net debt/equity ratio
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
0
0.1
0.2
0.3
0.4
0.5
0.6
Group maturity profile
by currency: borrowings
OthersAUD CAD EUR GBP HKD JPY USD
Within 1 year
Between 1-2 years
Between 2-5 years
Over 5 years
Others include KRW, NZD, SGD and TWD.
HK$ million
0
1,000
2,000
3,000
4,000
6,000
5,000
7,000
8,000
9,000
10,000
12,000
11,000
FINANCIAL REVIEW