332 YINSON HOLDINGS BERHAD ACCOUNTABILITY NOTES TO THE FINANCIAL STATEMENTS (CONT’D) For the financial year ended 31 January 2022 41. Financial risk management objectives and policies (continued) (a) Market risk (continued) (i) Interest rate risk (continued) Effects of hedge accounting on the financial position and performance The effects of the above-mentioned interest rate swaps on the Group’s financial position and performance are as follows: 2022 2021 RM million RM million Interest rate swaps Carrying amount (current and non-current liability) 23 225 Notional amount - LIBOR based swaps 3,759 3,985 Hedge ratio of project financing loans 100% 100% Change in fair value of outstanding hedging instruments since 1 February 72 129 Change in value of hedged item used to determine hedge effectiveness 72 129 Weighted average hedged rate for the year 3.89% to 5.55% 3.89% to 5.55% The maturity period of interest rate swaps ranges from November 2027 to December 2031. Interest rate sensitivity As an increase/decrease in interest rates by 10 (2021: 10) basis points would not result in a significant increase/decrease in interest expense for the unhedged variable rate loans of the Group, sensitivity analysis is not disclosed.
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