Company: BIP-PB
Filing Date: 2025-03-24
Form Type: 20-F
Source: 0001628280-25-014380
Chunk: 561

Company: Brookfield Infrastructure Partners L.P.
Filing Date: 2025-03-24
Form: 20-F
Item: Item 19
Chunk 561
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  Cash flow hedges                                  $             17,932      $              $             16,457      $              ( 459)  
  Net investment hedges                             973                       41             800                       ( 27)                  
                                                    $             18,905      $              $             17,257      $              ( 486)  

Our partnership settles the difference between the contracted fixed and floating rates of its interest rate swaps on a net basis. All interest rate swap contracts exchanging floating rate interest amounts for fixed rate interest amounts are designated as cash flow hedges in order to reduce our partnership’s cash flow exposure resulting from variable interest rates on borrowings. The interest rate swaps and the interest payments on the borrowings occur simultaneously and the amount accumulated in equity is reclassified to profit or loss over the period that the floating rate interest payments on borrowings affect profit or loss.

NOTE 36. FINANCIAL RISK MANAGEMENT

Brookfield Infrastructure is exposed to the following risks as a result of holding financial instruments: capital risk; liquidity risk; market risk (i. e. interest rate risk and foreign currency risk); and credit risk. The following is a description of these risks and how they are managed:

(a) Liquidity Risk Management

Brookfield Infrastructure manages its capital structure to be able to continue as a going concern while maximizing the return to stakeholders. Brookfield Infrastructure’s overall capital strategy remains unchanged from 2023. Our non-recourse borrowings have increased due to recently completed acquisitions while our consolidated net debt to capitalization ratio has increased to 62 56

The capital structure of Brookfield Infrastructure consists of debt, offset by cash and cash equivalents, and partnership capital comprised of issued capital and accumulated gains.

  US$ MILLIONS                                       2024                      2023                  
 ─────────────────────────────────────────────────────────────────────────────────────────────────────
  Corporate borrowings                               $              4,542      $              4,911  
  Non-recourse borrowings                                          46,552                    40,904  
  Subsidiary and corporate borrowings                              51,094                    45,815  
  Preferred shares                                   20                        20                    
  Cash and cash equivalents (1)                      ( 2,357)                  ( 2,488)              
  Consolidated net debt                                            48,757                    43,347  
  Total partnership capital