Debt Investors

Key debt data

 

FY2018

FY2017

FY2016 

FY2015 

FY2014 

FY2013 

FY2012 

FY2011 

Effective cost of debt 4.56 4.59 5.01 5.50 6.10 7.30    
Gross debt (interest-bearing loans and borrowings) (A$m)  457.6 471.1 472.3 485.4 448.3 296.5 288.9 210.8
Cash at bank and on deposit (A$m)  14.2  15.6 14.0 32.4 12.0 11.1 24.7 8.9
Gross debt less cash at bank and on deposit (A$m)  443.4  455.5 458.3 453.0 436.3 285.4 264.2 201.9
Net finance costs (includes non-interest expenses (A$m) 21.4  21.9 24.2 25.6 20.4 21.6 20.1 17.9
Net debt to equity (%)  24.2  25.8 27.9 31.4 33.3 27.5 27.1 20.5
Gearing (debt to total assets) (%)  19.3  20.4 21.5 24.1 24.4 21.2 21.6 17.0

  

Effective cost of debt (includes establishment and line fees)

Debt maturation profile as at 31 July 2018

Current credit rating*

 

 

Long term

Outlook

Short term

Standard and Poor's

A-

Stable

-

Moody's Investors Service

A3

Stable

-

*This credit rating is provided for use by wholesale investors only and must not be used, and BWP Trust does not intend or authorise its use, in the support of or in relation to the marketing of financial products to retail investors in Australia
  

Debt

Bank debt

BWP Trust has revolving cash advance facilities for varying amounts with its long term relationship banks. Whilst these facilities have fixed maturity dates, the terms of these facilities allow for the maturity period to be extended by a further year each year subject to the amended terms and conditions being accepted by both parties. The pricing on the continuing facilities is generally reset to current market levels on an annual basis.

Domestic debt capital markets

Program Documentation

Interest Rate Management

The Trust undertakes interest rate hedging to manage its exposure to the adverse effects on its finances from fluctuations in interest rates. The objective of implementing interest rate hedging is to:

  • reduce the risk of adverse impact to BWP's earnings from rising interest rates; and
  • improve the certainty of funding costs for planning purposes and financial analysis

by converting the variable interest rates applying to a portion of borrowings into fixed interest rates.

Subject to amendment from time to time, the Board has set the following targets for managing interest rate hedging:

  • The level of interest rate hedging of actual borrowings should be between 50 per cent and 75 per cent. This range is considered to provide a balance of certainty and flexibility.
  • The weighted average duration of the hedging programme (including delayed start swaps) should be between three years and seven years to provide sufficient certainty of funding costs in the short term and allow for better matching of debt funding, hedging and income streams under property leases.

Details of the Trust's current interest rate hedging profile can be found in the most recent annual report.