As Auckland’s population continues its strong growth trajectory, the Ports of Auckland has had to keep pace in order to provide the goods a growing city requires. There is not only the domestic demand for cars, food, consumables, etc. to satisfy, but also NZ’s export industry and burgeoning cruise ship tourism.
At 30 June 2014 Ports of Auckland had approximately $180 million of debt, a portion of which was hedged using interest rate swaps. The company has irregular FX exposure through imported capital expenditure and is also required to adjust its derivative valuations for credit to comply with IFRS 13 (CVA/DVA).
Ports of Auckland is one of Hedgebook’s oldest clients having been a Hedgebook user for a number of years. Historically, Ports of Auckland relied on excel spreadsheets, bank valuations and treasury advisors to stay on top of its derivative exposures. Hedgebook does not replace the treasury advisor (entirely) but it does replace the spreadsheets and bank valuations.
Ports of Auckland specifically uses Hedgebook for year-end compliance and ongoing debt management.