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## Interest rate risk 

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The most significant interest rate risk in the Group relates to borrowings. As the Group’s net debt is primarily in EUR and DKK, interest rate exposure relates to the development in the interest rates in these two currencies. 

The interest rate risk is measured by the duration of the net borrowings. The target is to have a duration between one and five years. Interest rate risks are mainly managed using interest rate swaps and fixed-rate bonds. 

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1 Net financial interest-bearing debt consists of current and non-current debt after swaps and currency derivatives less cash and cash equivalents. 

2 Before currency derivatives. 

The EUR 750m bond maturing 3 July 2019 consists of two bond issues of EUR 250m and EUR 500m. The EUR 500m bond was issued in July 2012, while the EUR 250m bond was issued in November 2012. 

A cross-currency swap has been used to change the interest on the GBP 300m bond from fixed to floating 6-month EURIBOR +4.01%. The bond and the swap are designated as a fair value hedge relationship, meaning that the car- rying amount of the bond is the fair value. 

