Interest rate management
As the effect of changes in interest rates can have a considerable impact on the Group’s reported profits, it is appropriate to ensure that the Group’s net exposure to such changes is managed within acceptable limits.
The Group seeks to achieve this by having a target of 70% - 100% of total debt being fixed rate.
The Group typically makes use of vanilla (rather than exotic) interest rate derivatives such as swaps and swaptions.
At 31 March 2021, 91% of the Group’s total drawn debt (including its share of non-recourse joint venture debt) was fixed rate or hedged.