Ancillary information

Group Structure

Group Structure

Tax Groups

Tax Structure

Financial Risk Management

The group's activities expose it to a variety of financial risks. The financial risk management function is carried out centrally under the policies approved by the Board. The group reviews operations actively to identify and monitor all financial risks and to mitigate these risks through the use of hedging instruments where appropriate. The Board is informed on a regular basis of any material exposures to financial risks.

The group uses derivative financial instruments in the normal course of business in accordance with the group's financial risk management policies. The group’s policies allow derivative transactions to be undertaken for the purpose of reducing risk and do not permit speculative trading.

In addition, the group is also exposed to interest rate risk arising from its long-term borrowings. The group manages interest rate risk by entering into fixed rate debt facilities or by using interest rate swaps to convert floating rate debt to fixed interest rates. The group’s policy is to hedge interest rate exposure at a minimum in compliance with the covenant requirements of funding facilities and up to 100%.

A key financial risk to the group is the fluctuation in foreign exchange rates. A summary of the group’s cross-currency swaps is provided below.

Cross-Currency Swaps Summary1

Corporate

Issue Foreign Currency
Amount
Hedged Amount Maturity
Euro Bond 1 €225M US$305M Oct-2020
Euro Bond 1 €275M A$399M Oct-2020
Euro Bond 2 €600M A$833M Sep-2024
Euro Bond 3 €500M A$706M Aug-2025
NOK Bond NOK750M A$117M Jul-2027
Euro Bond 4 €500M A$749M Mar-2028
Euro Bond 5 €600M A$968M May-2029
USPP 2004 C US$109M A$147M Dec-2019
USPP 2005 C US$157M A$206M Aug-2020
USPP 2006 D US$67M A$94M Nov-2026
144A Series 1 US$50M A$70M Feb-2026
144A Series 2 US$550M A$733M Mar-2027

Transurban Queensland

Issue Foreign Currency
Amount
Hedged Amount Maturity
USPP 2015 A US$155M A$203M Sep-2025
USPP 2015 B US$230M A$302M Sep-2027
USPP 2015 C US$256M A$336M Sep-2030
USPP 2016 E US$130M A$170M Dec-2026
USPP 2016 F US$225M A$293M Dec-2028
USPP 2016 G US$78M A$102M Dec-2031
USPP 2019 K US$144M A$204M May-2029
USPP 2019 L US$245M A$347M May-2031
USPP 2019 M US$180M A$255M May-2034
CHF Bond A CHF200M A$279M Jun-2023
CHF Bond B CHF175M A$236M Nov-2026
CHF Bond C CHF200M A$270M Dec-2025
Regulations S US$500M A$646M Apr-2028

1. Data as at 30 June 2019.