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Half Yearly Report 2008
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Hedging

We use derivative products to manage our interest rate exposure, and have a hedging policy which requires at least 80% of our existing debt plus our net committed capital expenditure to be at fixed interest rates for the coming five years. Specific hedges are also used in geared joint ventures to fix the interest exposure on limited recourse debt. At 30 September 2008 we had £1,262.1m of active interest rate hedges in place, and our debt including joint ventures was 81% fixed. Consequently, based on debt levels at 30 September 2008, a 1% fall in LIBOR would decrease full year interest charges by approximately £11.4m.