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NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2021 (continued)19 Financial Risk Management and Financial InstrumentsFinancial Risk ManagementIn the normal course of business, the Group has exposure to a variety of financial risks, including foreign currency risk, interest rate risk,liquidity risk and credit risk. The Group’s focus is to understand these risks and to put in place policies that minimise the economic impactof an adverse event on the Group’s performance. Meetings are held on a regular basis to review the result of the risk assessment, approverecommended risk management strategies and monitor the effectiveness of such policies.The Group’s risk management strategies include the usage of derivatives (other than for speculative transactions), principally forwardexchange contracts, interest rate swaps, and cross currency interest rate swaps.Liquidity riskIn addition to the high level of free cash flow, the Group operates a prudent approach to liquidity management using a mixture of longterm debt together with short-term debt, cash and cash equivalents, to enable it to meet its liabilities when due.The Group’s core funding is provided by a number of private placement loan notes totalling €1,377.1m (2020: €1,528.1m). The notes havea weighted average maturity of 6.4 years (2020: 6.1 years).The primary bank debt facility is a €700m revolving credit facility, which was undrawn at year end and which matures in May 2026. Thisreplaces the previously held revolving credit facilities of €451m and €300m which were scheduled to mature in June 2022. During 2021, thebilateral 'Green Loan' of €50m was also repaid.Both the private placements and the revolving credit facility have an interest cover test (EBITDA: Net Interest must not be less than 4times) and a net debt test (Net Debt: EBITDA must not exceed 3.5 times). These covenant tests have been met for the covenant testperiod to 31 December 2021.The Group also has in place a number of uncommitted bilateral working capital facilities to serve its working capital requirements. Thesefacilities total €65.2m (2020: €43.0m) and are supported by a Group guarantee. Core funding arrangements arise from a wide andvaried number of institutions and, as such, there is no significant concentration of liquidity risk.The following are the carrying amounts and contractual maturities of financial liabilities (including estimated interest payments):As at 31 December 2021Within 1 Between 1 Between 2year and 2 years and 5 years€m€m€mCarryingamount2021€mContractualcash flow€m18.01,377.12.4158.01,290.3202.318.81,533.22.4181.31,290.3212.211.690.00.139.01,290.341.71.865.00.132.7161.34.5454.90.363.49.20.9923.31.946.2-Derivative financial liabilities / (assets)Interest rate swaps used for hedging:Carrying valuesNet inflows------Cross currency interest rate swaps used for hedging:Carrying value- outflow- inflow---------Non derivative financial instrumentsBank loansPrivate placement loan notesLease obligations per banking covenantsLease liabilitiesTrade and other payablesDeferred contingent considerationForeign exchange forwards used for hedging:Carrying value assetsCarrying value liabilities- outflow- inflow154 - 155(0.3)-12.4(12.7)12.4(12.7)Greaterthan 5years€m
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