aving strategically reduced its exposure to legacy interest rate hedging instruments over the last few years, and in light of the Egham disposal announced on 28th March 2018 and progress elsewhere in the portfolio, the Group has taken the opportunity to cancel its remaining swap. The notional value of the swap was £33.0 million with a 5.2% coupon and has been cancelled at a cost to the Group of £13.4 million, with the cost of cancellation offset by a significant contribution from the counterparty bank. The annualised interest saving as a result of cancellation (at current rates) is £1.5 million pa.
Building on the Group's relationship with Aviva Investors, an additional £10.0 million of funding has been secured at a fixed rate of 3.4%, as an extension to its existing £55.0 million facility which expires in April 2030.
These events will enhance earnings, further strengthen the balance sheet and improve the Group's loan profile and spending capacity. The weighted average term of the debt facilities increases to 6.0 years (31stMarch 2017: 5.4 years), and the average cost of debt when fully drawn reduces to 3.0%. (31st March 2017:3.8%)
The benefit of these financing events will be covered in more detail alongside a full summary of McKay's significant year of delivery within the results to be announced in May 2018.