Astro Japan Property Group : Capital Hedging - Termination of Entire Remaining Hedge Book
02/01/2012 | 06:30pm
ASX/Media Release
2 February 2012
A$/¥ CAPITAL HEDGING - TERMINATION OF ENTIRE REMAINING HEDGE
BOOK
Astro Japan Property Group (ASX: AJA) today announced the
termination of its entire remaining
A$/¥ capital hedge book.
The two remaining hedges in the capital hedge book, having a
principal amount of Yen 3.8 billion (approximately $46.9
million at a rate of A$ = ¥80.99), have been terminated at
that rate resulting in a net cash cost to AJA of
approximately $8.4 million. The hedges were entered into at a
rate of A$ = ¥101.9 in 2008.
The amount required to fund the termination of the hedges was
fully paid from the collateral previously posted with the
counterparty. With all hedges now terminated, the remaining
balance of cash collateral of $5.3 million will be released
to AJA, and can be used for capital management and other
purposes.
Mr Eric Lucas, Senior Advisor to the Board of AJA said,
"Monetizing these hedges at a time of relative strength for
the A$ against the Yen and freeing up valuable cash makes a
lot of sense, particularly in light of changed investor
perceptions in recent times in relation to this aspect of
AJA's capital structure."
"We are fortunate to have been able to smoothly and
profitably run down what was a very large hedge book at the
onset of the GFC in 2008. AJA's financial results will now
fully reflect Yen outcomes and the relative performance of
the Yen against the A$ over time."
The profile of the capital hedges before the termination is
set out in the Appendix to this announcement.
ENDS
Investor & Media Enquiries:
Eric Lucas John Pettigrew
Senior Advisor Chief Financial Officer
Phone: +61 2 8987 3900 (Australia) Phone: +61 2 8987 3902
+81 3 3238 1671 (Japan)
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About Astro Japan Property Group (AJA)
Astro Japan Property Group is a listed property group which
invests in the Japan real estate market. It currently holds
interests in a portfolio comprising 41 retail, office and
residential properties. Asset management services in Japan
are generally undertaken by Spring Investment Co., Ltd.
AJA is a stapled entity comprising Astro Japan Property Trust
(ARSN 112 799 854) and Astro Japan Property Group Limited
(ABN 25 135 381 663). For further information please visit
our website: www.astrojapanproperty.com
.
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APPENDIX
Capital Hedge Maturity Profile
Capital hedge profile before termination
|
Settlement date
|
AJA receives AJA pays Exchange Interest rate
AUD ¥ rate spread
|
|
Aug-12
Aug-13
|
20,614,509 2,100,000,000 101.9 6.01%
16,687,936 1,700,000,000 101.9 5.86%
|
|
Total
|
37,302,445 3,800,000,000
|
