Company: BIPC
Filing Date: 2025-03-24
Form Type: 20-F
Source: 0001628280-25-014377
Chunk: 398

Company: Brookfield Infrastructure Corp
Filing Date: 2025-03-24
Form: 20-F
Item: Item 19
Chunk 398
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3                                      
  AS AT AND FOR THE YEARS ENDED (US$ MILLIONS)      Notional                 Effective      Ineffective      Notional      Effective      Ineffective  
                                                                             Portion        Portion                        Portion        Portion      
  Cash flow hedges                                  $             2,556      $              $                $             $              $            
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────

Our company 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 company’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 25. FINANCIAL RISK MANAGEMENT

Our company 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

Our company manages its capital structure to be able to continue as a going concern while maximizing the return to stakeholders. Our company’s overall capital strategy is consistent with that of the partnership which remains unchanged from 2023.

The capital structure of our company consists of debt, offset by cash and cash equivalents, exchangeable and class B shares, loans payable to Brookfield Infrastructure and share capital comprised of issued capital and accumulated gains.

  US$ MILLIONS                                    2024                    2023                
 ──────────────────────────────────────────────────────────────────────────────────────────────
  Non-recourse borrowings                         $           12,178      $           12,028  
  Cash and cash equivalents                       ( 674)                  ( 539)              
  Net debt                                                    11,504                  11,489  
  Shares classified as financial liability                     4,644                   4,153  
  Loans payable to Brookfield Infrastructure      102                     26                  
  Total equity                                                 2,222                   4,068  
  Total capital and net debt                      $           18,472      $           19,736  
  Net debt to capitalization ratio