DIGI - Annual Report 2021

Notes to the Financial Statements 31 December 2021 191 Integrated Annual Report 2021 Governance Audited Financial Statements Other Information 19. Derivative financial assets/(liabilities) Group 2021 2020 RM’000 RM’000 Non-hedging derivative financial assets/(liabilities) Non-current - Interest rate swaps 19.1 26,365 61,728 Current - Foreign currency forward contracts 19.2 (183) (394) 19.1 Interest rate swaps Notional value Fair value Assets RM’000 RM’000 RM’000 Interest rate swaps: - 2021 1,075,000 1,101,365 26,365 - 2020 1,075,000 1,136,728 61,728 Interest rate swaps are used to manage appropriate fair value change exposure within the Group. The Group entered into interest rate swaps to hedge the fair value risk in relation to the fixed interest rates of the Islamic Medium Term Note, as disclosed in Note 21 with notional principal amounts of RM1,075.0 million (2020: RM1,075.0 million). The interest rate swaps entitle the Group to receive interest semi-annually at fixed rates ranging from 4% to 5% per annum, and in return, pays interest quarterly at Kuala Lumpur Interbank Offer Rate plus a spread with a weighted average rate of 3% (2020: 3%) per annum.The swaps mature at varying dates based on the maturity of different tranches of the Islamic Medium Term Note.

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