Creating Stakeholder Value
Near-term interest rate protection
Debt hedging profile and inflation linked toll escalations provide protection in a rising interest rate environment and would likely
result in a net benefit over the near term
Embedded CPI escalation across 68% of revenue¹
CPI linked
99%
Fixed at 4.25% (until 2029)
68%
■Dynamic
of the existing debt
book has interest
rate hedging in place
27%
5%
O
Prepared for a higher inflation and interest rate environment
Capital management strategy based on long-term inflation and interest rate
trends
Balance sheet stress testing assists in reinforcing protection to rising rates
Near-term interest rate protection on over 99% of existing debt book with
embedded escalation across 68% of revenue
Likely net benefit from short-term rises in interest rates and CPI
Majority of upcoming term debt maturities are above average cost of
debt potentially creating a near-term net interest benefit from upcoming
refinances²
Benefit of a 1% increase in CPI is likely to be greater than the cost impact
of 1% higher interest rates, in the near term³
Weighted average maturity of 7.4 years as at 31 December 2021
Through the cycle view on long-term inflation and interest rates 4,5
8%
6%
4%
2%
0%
-2%
Mar-2005
Sep-2008
Australian CPI
Mar-2012
Sep-2015
Long-term CPI average
Mar-2019
10-year bond yield.
1. Refer to slide 44 for footnotes 2 and 3 for further information.
2. Refer slide 6 and 86 in the 1H22 Results presentation dated 17 February 2022 for more details.
3. Refer to slide 10 for further details.
4. Australian Bureau of Statistics.
5. Bloomberg.
Transurban
20
20View entire presentation