03 Financial Statements NOTE 5: FINANCIAL ASSETS

CEFC ANNUAL REPORT / 2014–15

Note 5: Financial Assets

 

 

2015

$’000

2014

$’000

Note 5A: Cash and Cash Equivalents

 

Cash on hand or on deposit

149,577

123,102

Total cash and cash equivalents

149,577

123,102

Note 5B: Short-Term Investments

 

Short-term deposits with financial institutions

100,000

270,000

Total short-term investments

100,000

270,000

Note 5C: Trade and Other Receivables

 

Goods and services receivables in connection with

   

Trade debtors – external parties

208

6

Total goods and services receivables

208

6

Other receivables

   

Unbilled receivables

908

625

Interest

5,260

4,086

Other

75

42

Total other receivables

6,243

4,753

Total trade and other receivables (gross)

6,451

4,759

Less: Impairment allowance

-

-

Total trade and other receivables (net)

6,451

4,759

Receivables are expected to be recovered

   

No more than 12 months

6,451

4,759

Total trade and other receivables (net)

6,451

4,759

Receivables are aged as follows

   

Not overdue

6,451

4,759

Total trade and other receivables (gross)

6,451

4,759


Credit terms for goods and services were within 30 days (2014: 30 days)
Interest receivable is due monthly, quarterly or upon maturity, depending on the terms of the investment.

 

2015

$'000

2014

$'000

Note 5D: Loans and Advances

Gross funded loans

332,752

239,560

Less concessional loan discount

(7,045)

(7,329)

Funded loans, net of concessionality discount

325,707

232,231

Less impairment allowance

(2,836)

(604)

Net loans and advances

322,871

231,627

Maturity analysis loans and advances, net of concessionality:

   

Overdue – impaired

3,431

-

Due in 1 year

32,925

14,480

Due in 1 year to 5 years

238,688

82,483

Due after 5 years

50,663

135,268

Funded loans, net of concessionality discount

325,707

232,231

Less impairment allowance

(2,836)

(604)

Net loans and advances

322,871

231,627

Concentration of risk

The largest single exposure in the loan portfolio at 30 June 2015 was for an amount of $67.7 million (2014: $69.3 million). The following table shows the diversification of investments in the loan portfolio at 30 June 2015:

  2015 2014
  No. of Loans Loan Value
$'000
% No. of Loans Loan Value
$'000
%
<$10 million 59 40,655 13% 35 40,665 17%
$10 - $30 million 2 45,624 14% 2 38,516 17%
$30 - $50 million 3 121,689 37% 1 33,739 15%
$50 - $80 million 2 117,739 36% 2 119,311 51%
Total loans and advances, net of concessionality discount 66 325,707 100% 40 232,231 100%


The following table shows the diversification of investments within the loan portfolio at 30 June 2015 by credit quality. Since the loans made by the Corporation are (in the main) to entities that will not have a formal credit rating, the Corporation has developed a Shadow Credit Ratings (‘SCR’) system. These are internal risk indicators used by the Corporation to assess the default risks of its debt instruments. The SCR assesses the probability of seeing the counterparty default under its obligations. The SCR is determined by a risk matrix based on internal risk assessments of the counterparty involved, the business risk it faces and the financial risk it has as a result of the debt it carries (including all new debt proposed in the investment opportunity).

  2015 2014
  Loan Value
$'000
% Loan Value
$'000
%
Corporation's Shadow Credit Rating        
AA- to AA+ 39,135 12% 1,108 -
A- to A+ 6,751 2% 11,657 5%
BBB- to BBB+ 59,273 18% 51,351  22%
BB- to BB+ 195,286 60% 166,284 72%
B- to B+ 25,262 8% 1,831 1%
Total loans and advances, net of concessionality discount 325,707 100% 232,231 100%

Impairment allowance

 

 

2015

$’000

2014

$’000

Reconciliation of the Impairment Allowance:
Movements in relation to loans and receivables

   

As at 1 July

604

-

Transferred from Low Carbon Australia Limited (‘LCAL’)

-

377

Increase recognised in write-down and impairment of assets

2,232

227

Closing balance at 30 June

2,836

604

Note 5E: Available For-Sale-Financial Assets

 

Quoted:

   

Debt securities

75,902

-

Equities

1,125

250

 

77,027

250

Unquoted:

   

Debt securities

-

55

Equities

30

-

 

30

55

Total AFS financial assets

77,057

305

Concentration of risk and impairment – AFS financial assets

Equity investments are amounts held by way of shares in publicly listed entities or units in unincorporated unit trust structures. During the 2015 financial year, a permanent diminution in the value of certain AFS financial assets was recognised in the amount of $39,000 (2014: $414,000).

 

 

2015

$'000

2014

$'000

Note 5F: Other Financial Assets

Restricted deposit accounts with financial institutions

597,875

621,822

Total other financial assets

597,875

621,822

Maturity analysis of other financial assets

Restricted deposit accounts with financial institutions are expected to mature within 12 months, however, the funds are not expected to be returned to the Corporation as they are contractually restricted to funding committed credit facilities and committed investments at call. Accordingly, the maturity analysis shown below, is the anticipated maturity date at which the funds are expected to be repaid to the Corporation.

 

 

2015

$'000

2014

$'000

Maturity analysis for other financial assets (gross)

   

Due in 1 year

57,226

38,445

Due in 1 year to 5 years

198,687

190,815

Due after 5 years

341,962

392,562

Total other financial assets

597,875

621,822


Restricted deposit accounts with financial institutions are amounts that have been funded into accounts held with financial institutions where they are contractually limited to being applied against specific loans and receivables or investments that the Corporation has entered into. The funds are held until such time as they are either drawn down by the counter-party or the availability period expires under the facilities. The amounts are held with Australian banks each of which have a credit rating of no less than A+. No single bank holds more than 50% of the total.

The following table shows the diversification of anticipated projects/loans that the investments are expected to be applied against at 30 June 2015 by credit quality using the Corporation’s SCR methodology:

 

2015

2014

 

$’000

%

$’000

%

Corporation’s Shadow Credit Rating

   

A- to A+

-

-%

100,333

16%

BBB- to BBB

206,317

35%

192,535

31%

BB- to BB+

246,558

41%

228,855

37%

B- to B+

20,000

3%

20,099

3%

Unrated – equity investments

125,000

21%

80,000

13%

Total restricted deposit accounts

597,875

100%

621,822

100%

Provision for impairment – Other financial assets

An impairment will be recognised if it is likely that other financial assets will not be recovered in full. In this instance a specific provision will be created for impairment. There was no impairment in 2015 (2014: $Nil).