Page 44 - GMT and GMT Bond Issuer Annual Report 2017 v2

NOTES TO THE
3. BORROWINGS
3.1 Interest
FINANCIAL STATEMENTS
$ million
Interest income Interest income
Total interest income
Interest costs
Interest expense
Amortisation of borrowing costs Borrowing costs capitalised (1) Total interest costs
Net interest cost
(1) Borrowing costs of $11.4 million were capitalised to land (2016: $17.1 million).
3.2 Borrowings
$ million
Current
Wholesale bonds
Total current borrowings
Non-current
Syndicated bank facility
Retail bonds
Wholesale bonds
US Private Placement notes – New Zealand dollar amount on inception (1) Total non-current
US Private Placement notes – foreign exchange translation impact (1) Unamortised borrowings establishment costs
Total non-current borrowings
Total borrowings
2017
5.7
5.7
(37.5) (4.2) 18.0
(23.7)
(18.0)
2016
2.0
2.0
(42.2) (4.2) 23.9
(22.5)
(20.5)
continued
For the year ended 31 March 2017
ACCOUNTING POLICIES
Interest costs charged on borrowings are recognised as incurred. Costs associated with the establishment of borrowings are amortised over the term of the relevant borrowings.
2017
45.0
45.0
293.0 200.0 - 156.8
649.8
14.4 (4.4)
659.8
704.8
2016
-
-
401.5 200.0 45.0 156.8
803.3
16.8 (5.2)
814.9
814.9
ACCOUNTING POLICIES
Borrowings are recorded initially at fair value, net of transaction costs. Subsequent to initial recognition, borrowings are carried at amortised cost using the effective interest method.
GOODMAN PROPERTY TRUST ANNUAL REPORT 2017 FINANCIAL STATEMENTS
(1) US Private Placement notes comprise $156.8 million for funds received at the borrowing date and $14.4 million for the foreign exchange translation impact (2016: $16.8 million). These borrowings are fully hedged and GMT take no currency risk on interest and principal payments.
42 NOTES TO THE FINANCIAL STATEMENTS