Annual Report 2012 - IOI Group

42. FINANCIAL INSTRUMENTS (Continued)42.1 Foreign currency risk (Continued)42.1.2 Foreign currency risk exposure (Continued)As at the end of the reporting period, the Group and the Company have also entered into the following currencyswap contracts:Group2012i. Cross currency swap to swap fixed rate USD liability of USD104.1 million to fixed rate EUR liability of EUR80.0million. The contract effectively swapped part of the Group’s fixed rate Guaranteed Notes into fixed rate EURliability. This was done to maintain the appropriate amount of liability in EUR as a natural hedge againstexisting EUR denominated investment in subsidiaries. The effective period for this cross currency swap is fromFebruary 2005 to February 2015.ii.iii.iv.Cross currency swaps to swap JPY liability of JPY21.0 billion to USD liability of USD182.7 million. These wereentered into as a cashflow hedge for the Group’s principal repayment for the loan obtained. The effectiveperiod for these cross currency swaps is from January 2007 to February 2038.Cross currency swaps to swap floating rate USD liability of USD100.0 million to fixed rate RM liability ofRM302.0 million. These were entered into as a cashflow hedge for the Group’s principal repayment for the loanobtained. The effective period for these cross currency swaps is from March 2012 to December 2016.Cross currency swap to swap floating rate USD liability of USD156.0 million to floating rate SGD liability ofSGD196.7 million. This was entered into to maintain the appropriate amount of liability in SGD as a naturalhedge against existing SGD denominated investment. The effective period for this cross currency swap is fromApril 2012 to December 2016.2011i. Cross currency swap to swap fixed rate USD liability of USD104.1 million to fixed rate EUR liability of EUR80.0million. The contract effectively swapped part of the Group’s fixed rate Guaranteed Notes into fixed rate EURliability. This was done to maintain the appropriate amount of liability in EUR as a natural hedge againstexisting EUR denominated investment in subsidiaries. The effective period for this cross currency swap is fromFebruary 2005 to February 2015.ii.iii.Cross currency swaps to swap JPY liability of JPY21.0 billion to USD liability of USD182.7 million. These wereentered into as a cash flow hedge for the Group’s principal repayment for the loan obtained. The effectiveperiod for these cross currency swaps is from January 2007 to February 2038.Cross currency swaps to swap floating rate USD liability of USD100.0 million to fixed rate RM liability ofRM351.5 million. These were entered into as a cash flow hedge for the Group’s principal repayment for theloan obtained. The effective period for these cross currency swaps is from February 2009 to March 2012.Annual Report 2012IOI CORPORATION BERHAD 219