Referring to the distribution of debt, long-term debt represented more than 90% at year end 2015, while it would mature in 2021 on average. In order to minimise exposure to interest rate risks, Saba maintains a high percentage of debt at a fixed rate, approximately 50%. Therefore, it is estimated that any possible changes in interest rates would not have a significant impact on the company's accounts. The weighted average interest rate on the date of year end 2015 stood at 4.1%.
As for risk management, the Group's financial board has a policy in place to cover all significant exposure to risks (exchange rate, interest rate, credit and liquidity) as long as there are appropriate instruments and the cost of such protection is reasonable for the risks covered.
Regarding the exchange rate, Saba operates internationally and only owns assets in foreign currency in Chile, therefore it is exposed to an exchange rate risk for operations in foreign currencies, especially the Chilean peso, as well as for investments made there. Despite this exposure, a variation of 10% in the euro/Chilean peso exchange rate at year end of 31 December 2015 would have an impact of +/− €174,000 on results and an insignificant impact on equity due to differences in conversion from the consolidation process.