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71
APN
annual report
2011
notes to the financial statements
APN News & Media Limited and Controlled Entities
15. INTEREST BEARING LIABILITIES
2011
$’000
2010
$’000
Current
Bank loans – unsecured
25,057
23,344
Lease liabilities (refer note 24)
2,447
2,421
Total current interest bearing liabilities
27,504
25,765
Non-current
Bank loans – unsecured
520,390
581,857
New Zealand Bond
76,104
75,415
Lease liabilities (refer note 24)
45,452
47,884
641,946
705,156
Deduct
Borrowing costs
15,550
17,873
Accumulated amortisation
(7,130)
(7,045)
Net borrowing costs
8,420
10,828
Total non-current interest bearing liabilities
633,526
694,328
Fair value and risk management
The fair value of interest bearing liabilities equals their carrying value.
(a) Risk exposures
The exposure of borrowings to interest rate changes and the contractual repricing at the balance dates are as follows:
2011
$’000
2010
$’000
Six months or less
190,676
227,896
Six to twelve months
121,648
40,685
One to five years
357,126
386,925
Greater than five years
–
75,415
Interest bearing liabilities
669,450
730,921
The carrying amounts of borrowings are denominated in the following currencies:
Australian dollars
388,566
415,305
New Zealand dollars
280,884
315,616
Interest bearing liabilities
669,450
730,921
For an analysis of the sensitivity of borrowings to interest rate risk, refer note 33.
(b) Capital risk management
The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern, so that it can continue to provide
returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to
shareholders, issue new shares or sell assets to reduce debt.