2nd Sep 2022 09:08
(Alliance News) - Panther Securities PLC on Friday said it has seen a "material fall" in its swap liability position, ahead of the publication of its interim results.
At the end of December, the London-based property investment company's swap liability position was GBP15.3 million. At June 30, this had fallen to GBP3.9 million and at August 31 it had fallen further to GBP400,000.
Panther has two financial derivatives which comprise its current swap liability. The first is at a fixed rate of 2.01% on GBP25 million with around nine years to run. The second is at a fixed rate of 5.06%, dropping to 3.4% in September 2023, on GBP35 million with around 16 years to run.
The company said: "The combined liability under the financial derivatives, which is a non-cash liability, has fluctuated significantly since they were first entered into, mainly due to their long dated nature and large swings in interest rate expectations, and the directors believe that this will continue to be the case until their maturity dates.
"However, given the current market expectation for rising rates, the value of these instruments is benefiting from this market outlook."
It added that it will also protect the company from the cost of rising interest rates on GBP60 million of its bank loans.
Panther Securities said it plans to publish its interim results for the six months ended June 30 later this month.
Shares in Panther Securities were down 1.8% to 270.00 pence each in London on Friday morning.
By Sophie Rose; [email protected]
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