ACCOUNTABILITY | FINANCIAL STATEMENTS 301 NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 January 2024 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 (continued) The effects of the above-mentioned interest rate swaps on the Group’s financial position and performance are as follows: (continued) 2023 SOFR RM million LIBOR RM million Total RM million Interest rate swaps Carrying amount (current and non-current liability) 91 278 369 Notional amount 1,991 3,462 5,453 Hedge ratio of project financing loans 72% 100% 88% Change in fair value of outstanding hedging instruments since 1 February 91 304 395 Change in value of hedged item used to determine hedge effectiveness 91 304 395 Weighted average hedged rate for the year 6.39% 3.89% to 5.55% 3.89% to 6.39% The maturity period of interest rate swaps ranges from August 2026 to December 2031 (2023: August 2026 to December 2031). Sensitivity Profit or loss is sensitive to higher/lower interest expenses from unhedged floating term loans as a result of changes in interest rates. The impact to the Group’s profit arising from increase/decrease in interest rates by 10 basis points for the current financial year is RM5 million (2023: RM2 million) The impact to the Company’s profit arising from increase/decrease in interest rates by 10 basis points has been assessed as immaterial for both the current and previous financial year.
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