This article is from the Australian Property Journal archive
CROMWELL has entered into two short term interest rate hedges worth $500 million.
The group has recently entered into a vanilla interest rate cap for $300 million at 4.75% for one year commencing July 2010; and a vanilla interest rate swap for $200 million at 4.75% for two years commencing May 2010.
These hedges, when combined with existing swaps already in place mean the group is now 92% hedged for FY11 based on current drawn debt. The weighted average hedge rates for FY11 and FY12 are 4.98% and 5.24% respectively.
Cromwell Treasurer David Gippel said recent events in world markets presented the group with an opportunity to expand its hedging profile at the short end of the interest rate curve at minimal cost.
“We continue to actively monitor markets and may extend the profile out further in the future if we believe market pricing in the 3-5 year range moves closer to what we consider to be attractive levels,” he added.
Australian Property Journal
