Sep/Dec 2016 Q1

Hi John
In Sep/Dec 2016 Q1 forecast PAT for the coming year . As the first director’s proposal why do we calculate” interest saved due to lower borrowing” with the nominal interest rate at 6.2% but the new Kd 4.4%?

And the opportunity benefit(120×20%x(4.7%-4.4%)) as the remaining 20% from NCL(120m) paying a new lower Kd rate (4.4%) compare with the current Kd at(4.7%). Was not included in the forecast PAT.

As the second director’s proposal the forecast PAT does not include the additional interest on exiting NCL(120x(6.2%-4.7%)) paying a new higher Kd at (6.2%) compare with the current lower Kd 4.7%?

Thanks