Our treasury policies address the key treasury risks that the business faces. The policies are designed to provide robust risk management, even in more volatile financial markets and economic conditions within our planning horizon. In addition to these policies, our operational procedures and controls ensure that funds are available in the right currency at the right time to serve our customers throughout the Group.
Funding policy
- Ensure a resilient funding position for existing business and future growth to be maintained.
- Maintain a prudent level of headroom on undrawn bank facilities.
Currency policy
- Ensure funding of receivables portfolios with local currency borrowings (directly or indirectly) to achieve a high level of balance sheet hedging.
- We do not hedge the translational risk of foreign currency movements on accounting profits and losses.
Interest rate policy
- Significant portion of financial liabilities at fixed interest rates.
Counterparty policy
- Requires material exposures to financial counterparties to be limited to BBB-rated entities as a minimum.
