Company: G
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001398659-25-000035
Chunk: 121

Company: Genpact LTD
Filing Date: 2025-03-03
Form: 10-K
Item: Item 7A
Chunk 121
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, the laws of China, India, Malaysia, the Philippines and Romania limit the duration and amount of such arrangements. We may not be able to purchase contracts adequate to insulate us from Indian rupee-U.S. dollar, Chinese renminbi-Japanese yen, Chinese renminbi-U.S dollar, Philippine peso-U.S. dollar, Malaysian ringgit-U.S. dollar and Romanian leu-euro foreign exchange currency risks. In addition, any such contracts may not perform adequately as hedging mechanisms. See Item 7 —“Management’s Discussion and Analysis of Financial Condition and Results of Operations—Foreign exchange gains (losses), net.”

Interest rate risk

Our exposure to interest rate risk arises principally from interest on our indebtedness. As of December 31, 2024, we had $1,221.4 million of indebtedness, comprised of (a) $476.1 million of indebtedness under our 2022 Credit Agreement consisting of a long-term loan of $476.1 million, net of $0.9 million in unamortized debt issuance expenses, (b) $349.2 million in indebtedness under our 2021 Senior Notes, net of $0.8 million in unamortized bond issuance expenses, and (c) $396.1 million in indebtedness under our 2024 Senior Notes, net of $3.9 million in unamortized bond issuance expenses. Interest on indebtedness under the 2022 Credit Agreement is based on Term SOFR, and we are subject to market risk from changes in interest rates. Borrowings under our 2022 Credit Agreement bear interest at floating rates based on Term SOFR, but in no event less than the floor rate of 0.0% plus an applicable margin. See Item 1A—"Risk Factors"—"We may be unable to service our debt or obtain additional financing on competitive terms or at all.” Based on our indebtedness, a 2% change in interest rates, including the impact on the cost of our interest rate swaps, would have had a $6.0 million impact on our net interest expense in fiscal 2024. Additionally, the interest rates on our 2019 and 2021 Senior Notes are subject to adjustment based on the ratings assigned by Moody’s and S&P to the notes from time to time. A decline in such ratings could result in an increase of up to 2% in the rate of interest on the 2019 and 2021 Senior Notes. For