AB InBev Financial Results
US dollar bank loan hedges (foreign currency risk on borrowings against the Nigerian naira)
The company has a floating rate loan denominated in US dollar for a total of 309m in Nigeria. This loan is held by an entity
with functional currency in Nigerian Naira. In order to hedge against fluctuations in foreign exchange rates, the company
entered into foreign exchange futures which have been designated in a cash flow hedge relationship.
Economic Hedges
Marketable debt security hedges (interest rate risk on Brazilian real)
During 2022 and 2021, Ambev invested in highly liquid Brazilian real denominated government debt securities.
Interest rate sensitivity analysis
The table below reflects the effective interest rates of interest-bearing financial liabilities at the reporting date as well as
the currency in which the debt is denominated.
31 December 2022
Interest-bearing financial liabilities
Million US dollar
Floating rate
Canadian dollar
Euro
Pound sterling
South Korean won
US dollar
Other
Fixed rate
Canadian dollar
Chinese yuan
Euro
Pound sterling
South Korean won
US dollar
Other
31 December 20211
Interest-bearing financial liabilities
Million US dollar
Before hedging
Effective
interest rate
Amount
After hedging
Effective
interest rate
Amount
4.34%
1 455
1.68%
1 048
1.68%
1 048
3.70%
1 078
1
3.08%
311
5.05%
430
13.39%
252
11.17%
666
1 730
4 557
4.50%
613
4.37%
3 741
2.44%
50
2.50%
1 230
2.27%
20 391
2.31%
21 242
5.13%
2 208
5.55%
1 607
2.96%
46
0.94%
1 896
4.99%
53 478
5.27%
44 547
10.53%
1 476
12.19%
1 172
78 261
Before hedging
Effective
After hedging
Effective
75 434
interest rate
Amount
interest rate
Amount
Floating rate
Canadian dollar
Euro
Pound sterling
South Korean won
US dollar
Other
Fixed rate
Canadian dollar
Chinese yuan
Euro
Pound sterling
South Korean won
US dollar
Other
1.21%
2 043
1 113
1 113
1.05%
1 002
1.67%
502
1.67%
5.37%
463
734
5.99%
1 504
2 310
6 164
4.11%
626
4.29%
3 158
3.87%
34
1.78%
194
2.27%
21 654
2.11%
27 553
4.35%
3 611
4.43%
2 937
3.85%
31
0.87%
1 695
4.93%
8.09%
59 399
5.41%
46 288
1 165
9.62%
841
86 520
82 667
As at 31 December 2022, the total carrying amount of the floating and fixed rate interest-bearing financial liabilities before
hedging as listed above includes bank overdrafts of 83m US dollar (31 December 2021: 53m US dollar). As disclosed in
the above table, 4 557m US dollar or 5.7% of the company's interest-bearing financial liabilities bears interest at a variable
rate.
1 Amended to conform to 2022 presentation.
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