2007 Annual Report - Sappi

31. Financial Instruments continued
3. Interest rate risk-quantitative data
Interest-bearing borrowings
The table below provides information about Sappi’s non-current borrowings that are sensitive to changes in interest rates.
The table presents discounted cash flows by expected maturity dates.
The average fixed effective interest rates presented below are based on weighted average contract rates applicable to the
amount expected to mature in each respective year. Forwardlooking average variable effective interest rates for the financial
years ended September 2007 and thereafter are based on the yield curves for each respective currency as published by
Reuters on 30 September 2007. The information is presented in US$, which is the group’s reporting currency.
A detailed analysis of the group’s borrowings is performed under note 21.
Expected maturity date
Total 2007 2006 2006
carrying Fair Carrying Fair
US$ million 2008 2009 2010 2011 2012 2013+ value value value value
US Dollar
Fixed rate 17 – 38 – – – 55 56 54 44
Average
interest rate (%) 6.13 – 4.49 – – – 5.01 4.5
Variable rate (1)(2) 145 – – – 469 332 946 947 1,071 1,174
Average
interest rate (%) 4.86 – – – 7.83 7.87 7.39 7.1
Euro
Fixed rate 128 6 6 570 1 5 716 721 651 673
Average
interest rate (%) 5.02 5.97 6.13 4.62 2.49 2.46 4.69 4.7
Variable rate (1)(3) 297 – – – – – 297 297 273 273
Average
interest rate (%) 3.98 – – – – – 3.98 3.7
Rand
Fixed rate 6 7 23 53 149 161 399 408 235 150
Average
interest rate (%) 9.42 9.56 8.69 8.84 10.65 9.53 9.81 9.6
Variable rate (1)(4) 36 6 2 – – – 44 44 44 44
Average
interest rate (%) 9.84 9.86 9.86 – – – 9.84 8.7
sappi limited | 07 | annual report 145