|
| |
2006 |
|
2005 |
a |
| |
£m |
|
£m |
|
|
|
|
|
|
|
US
dollar 8.875% notes 2030 (minimum 8.625%b)c |
1,580 |
|
1,413 |
|
|
Sterling
5.75% bonds 2028 |
607 |
|
596 |
|
|
Sterling
3.5% indexed linked notes 2025 |
291 |
|
278 |
|
|
Sterling
8.625% bonds 2020 |
297 |
|
297 |
|
|
Sterling
7.75% notes 2016 (minimum 7.5%b) |
709 |
|
692 |
|
|
Euro
7.125% notes 2011 (minimum 6.875%b)c |
790 |
|
771 |
|
|
US
dollar 8.375% notes 2010 (minimum 8.125%b)c |
1,713 |
|
1,535 |
|
|
US
dollar 8.765% bonds 2009d |
120 |
|
106 |
|
|
US
dollar convertible 2008 (0.75%) |
– |
|
90 |
|
|
US
dollar 7% notes 2007d |
624 |
|
529 |
|
|
Sterling
7.375% notes 2006 (minimum 7.125%b) |
409 |
|
399 |
|
|
Sterling
12.25% bonds 2006 |
– |
|
229 |
|
|
Euro
6.375% notes 2006 (minimum 6.125%b)d |
– |
|
2,061 |
|
|
US
dollar 7.875% notes 2005 (minimum 7.624%b)d |
– |
|
1,485 |
|
|
|
|
|
|
|
Total
listed bonds, debentures and notes |
7,140 |
|
10,481 |
|
|
|
|
|
|
|
Finance
leases |
845 |
|
1,100 |
|
|
|
|
|
|
|
Commercial
paperc,e |
472 |
|
– |
|
|
Sterling
bank loans due 2007-2009 (average effective interest rate 9.7%) |
240 |
|
240 |
|
|
Sterling
floating rate note 2005-2009 (average effective interest rate 4.1%) |
49 |
|
90 |
|
|
Sterling
floating rate loan 2006 (average effective interest rate 10.3%) |
– |
|
92 |
|
|
Sterling
floating rate loan 2009 (average effective interest rate 4.6%) |
1,003 |
|
– |
|
|
Preference
shares |
5 |
|
– |
|
|
Bank
overdrafts (of which £171 million had a legally enforceable right
of set off – see note 9) |
181 |
|
2 |
|
|
|
|
|
|
|
Total
other loans and borrowings |
1,950 |
|
424 |
|
|
|
|
|
|
|
Total
loans and other borrowings |
9,935 |
|
12,005 |
|
|
|
|
|
|
| a |
The
group adopted IAS 32 and IAS 39 from 1 April 2005. The group
previously recognised the currency value of derivatives
against the loans and other borrowings balance. These recognised
amounts have been reclassified in the comparative period
as derivative financial instruments. In addition, the underlying
borrowing is stated based on previously applied UK GAAP
at the amount of net proceeds adjusted to amortise any discount
over the term of the debt (see accounting
policies). |
| b |
The interest rate payable on
these notes will be subject to adjustment from time to time if either
Moody’s or Standard and Poor’s (S&P) reduces the rating
ascribed to the group’s senior unsecured debt below A3 in the case
of Moody’s or below A minus in the case of S&P. In this event,
the interest rate payable on the notes and the spread applicable to the
floating notes will be increased by 0.25% for each ratings category adjustment
by each rating agency. In addition, if Moody’s or S&P subsequently
increase the ratings ascribed to the group’s senior unsecured debt,
then the interest rate then payable on notes and the spread applicable
to the floating notes will be decreased by 0.25% for each rating category
upgrade by each rating agency, but in no event will the interest rate
be reduced below the minimum interest rate reflected in the above table. |
| c |
Hedged in a designated cash
flow hedge. |
| d |
Hedged in a designated cash
flow and fair value hedge. |
| e |
Commercial paper is denominated
in sterling (£35 million), US dollar (£66 million) and euro
(£371 million). |
The interest rates payable on loans
and borrowings disclosed above reflect the coupons on underlying issued loans
and borrowings and not the interest rates achieved through applying associated
currency and interest rate swaps in hedge arrangements.
The carrying values disclosed above
for the current year reflect balances at amortised cost adjusted for deferred
and current fair value adjustments to the relevant loans or borrowing’s
hedged risk in a fair value hedge. This does not reflect the final principal
repayment that will arise after taking account of the relevant derivatives in
hedging relationships which is reflected in the table below. Apart from finance
leases all borrowings as at 31 March 2006 are unsecured.
| |
|
2006 |
|
2005 |
|
|
|
|
|
|
|
| |
|
|
|
|
|
Principal |
|
|
|
|
|
Principal
|
|
| |
|
Carrying |
|
Effect
of hedging |
|
repayments
at |
|
Carrying |
|
Effect
of hedging |
|
repayments
at |
|
| |
|
amount |
|
and
interest |
a |
hedged
rates |
|
amount |
|
and
interest |
a |
hedged
rates |
|
| |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
|
|
Repayments
fall due as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Within one year, or on demand |
|
1,940 |
|
(190 |
) |
1,750 |
|
4,261 |
|
344 |
|
4,605 |
|
Between
one and two years |
|
1,182 |
|
(3 |
) |
1,179 |
|
788 |
|
– |
|
788 |
|
Between
two and three years |
|
337 |
|
– |
|
337 |
|
806 |
|
43 |
|
849 |
|
Between
three and four years |
|
369 |
|
8 |
|
377 |
|
100 |
|
(2 |
) |
98 |
|
Between
four and five years |
|
2,467 |
|
55 |
|
2,522 |
|
258 |
|
17 |
|
275 |
|
After
five years |
|
3,628 |
|
63 |
|
3,691 |
|
5,792 |
|
289 |
|
6,081 |
|
Total
due for repayment after more than one year |
|
7,983 |
|
123 |
|
8,106 |
|
7,744 |
|
347 |
|
8,091 |
|
|
|
Total
repayments |
|
9,923 |
|
(67 |
) |
9,856 |
|
12,005 |
|
691 |
|
12,696 |
|
Fair
value adjustments for hedged risk |
|
12 |
|
|
|
|
|
– |
|
|
|
|
|
|
|
Total
loans and other borrowings |
|
9,935 |
|
|
|
|
|
12,005 |
|
|
|
|
|
|
|
| a |
Adjustment for hedging and interest reflects the impact of the currency element of derivatives and adjusts the repayments to exclude interest recognised in the carrying amount. |
| |
|
Minimum
lease payments |
|
Repayment
of outstanding
lease obligations |
|
| |
|
2006 |
|
2005 |
|
2006 |
|
2005 |
|
| |
|
£m |
|
£m |
|
£m |
|
£m |
|
|
|
Amounts payable under finance leases: |
|
|
|
|
|
|
|
|
|
Within one year |
|
361 |
|
352 |
|
318 |
|
301 |
|
In the second to fifth years inclusive |
|
391 |
|
695 |
|
316 |
|
587 |
|
After five years |
|
430 |
|
439 |
|
211 |
|
212 |
|
|
|
| |
|
1,182 |
|
1,486 |
|
845 |
|
1,100 |
|
Less: future finance charges |
|
(337 |
) |
(386 |
) |
– |
|
– |
|
|
|
Total finance lease obligations |
|
845 |
|
1,100 |
|
845 |
|
1,100 |
|
|
|
The group’s obligations under finance leases are secured by the lessors’ title to the leased assets.
|
