Interest rate risk hedging policy

Intent

To provide guidance to the Financial Services Group treasury unit to manage RMIT interest expense and associated interest rate risk.

Scope

Applicable to all entities in the RMIT Group.

Exclusions

No exclusions

Objectives

Interest rate risk management has the objective of managing interest rate exposures in order to minimise the uncertainty of the cost of borrowings (and maximise the return on financial investments).

Policy provisions

1. RMIT intends to hedge interest expense within the approved limits.

2. No hedging position is taken which increases the physical loan exposure.

3. Guidelines to manage interest rate risk are confirmed on an annual basis.

4. RMIT can utilise approved interest rate hedging instruments to manage interest rate risk.

5. Transaction approval will be obtained from Vice Chancellor or Vice President Resources.

6. Timely reporting of interest rate exposure and hedge positions will be provided in accordance with the guidelines.

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