Financial Statements 2016 | Page 61

Interest rate exposure is managed via the use of interest rate fixings. The Group’s policy is that between 60% - 80% of its total borrowing should be at fixed rates of interest. At the year-end, 73% (2015: 65%) of the Group’s borrowings were at fixed rates of interest – the levels of fixed/hedged debt remains under constant review. The Group has not used stand-alone derivative financial instruments to manage its interest rate exposure during the year. However, The Group does have the Wider Rule Change and approval from the Homes and Communities Agency to use stand-alone derivative financial instruments, and has facilities in place with three funding institutions to utilise these instruments. Continuity of funding is ensured by arranging for short term borrowings and committed facilities and by limiting the amount of debt repayable in any one year. In 2015/16 a new £30m funding facility was secured to further support the Group’s commitment to delivering new housing supply and ensure ongoing liquidity requirements continue to be met at all times. Year-end undrawn committed Group facilities were £66.8million (2015: £46.7 million), and with a maximum amount of £61.75 million for Accord Housing Association (2015: £45 million). Group-wide interest payable increased to £16.675 million (2015: £14.212 million), and debt increased from £396.172 million to £400.286 million. Increased total funding facilities highlights Accord’s commitment to the development of new homes and the regeneration of the communities we serve. The Group’s main financial covenants are in respect of loan gearing and interest cover. The Board believes that the financial covenants entered into are appropriate for the Group’s operations. The table below provides an analysis of when the debt falls due for repayment. Debt Repayment Group 2016 2015 £m £m 0 – 1 year 12.211 9.523 1 – 2 years 11.680 10.259 2 – 3 years 12.380 8.476 3 – 5 years 29.124 24.358 5 – 10 years 90.413 85.543 10 – 15 years 84.238 93.352 15 – 20 years 90.197 85.370 20 – 25 years 61.725 68.778 25 – 30 years 8.269 10.429 Over 30 years 0.049 0.084 400.286 396.172 Total Financial Statements 2016 59