TAV IT

186
TAV Airports Holding Annual Report 2008
TAV AIRPORTS HOLDING AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2008
(Amounts expressed in Euro unless otherwise stated)
36. DERIVATIVE FINANCIAL INSTRUMENTS
At 31 December, derivative financial instruments comprised the following:
2008
Assets Liabilities Net Amount
Interest rate swap - (69,699,812) (69,699,812)
Cross currency swap 32,257,634 - 32,257,634
32,257,634 (69,699,812) (37,442,178)
2007
Assets Liabilities Net Amount
Interest rate swap 2,327,826 (4,028,806) (1,700,980)
Cross currency swap - (15,443,800) (15,443,800)
2,327,826 (19,472,606) (17,144,780)
Derivative Contracts
TAV Esenboğa uses interest rate derivatives to manage its exposure to interest rate fluctuations on its bank borrowings.
Approximately 100% of project finance loan is hedged through Interest Rate Swap (“IRS”) contract during the life of the loan with
an amortising schedule depending on repayment of the loan.
TAV İstanbul uses interest rate derivatives to manage its exposure to interest rate fluctuations on its bank borrowings.
Approximately 100% of project finance loan is hedged through IRS contract during the life of the loan with an amortising schedule
depending on repayment of the loan.
TAV Tunisie uses interest rate derivatives to manage its exposure to interest rate fluctuations on its bank borrowings.
Approximately 100% of project finance loan is hedged through IRS contract during the life of the loan with an amortising schedule
depending on repayment of the loan.
TAV İzmir uses interest rate derivative to manage its exposure to interest rate fluctuations on its bank borrowings. Approximately
80% of total project finance loan is hedged through IRS contract during the life of the loan.
TAV İstanbul uses cross currency derivatives to manage its exposure to foreign currency exchange rates on its concession
installments that will be paid to DHMİ.
Cross currency swap
TAV İstanbul has signed a derivative contract to manage and fix its exposure to foreign currency exchange rates between USD and
EUR on the concession installments that will be paid to DHMİ. The contract term matches with the terms of the rent payments
made to DHMİ which is the end of each December until year 2018. The total notional amount of the contract is EUR 349,947,316
(equivalent of USD 518,971,869) as at 31 December 2008 (31 December 2007: EUR 143,444,854 (equivalent of USD 183,035,634)).