|
17.
LOANS AND OTHER BORROWINGS
| |
|
|
2007
£m |
|
|
2006
£m |
|
|
|
|
|
|
|
|
|
|
US
dollar 9.125% (2006: 8.875%) notes 2030 (minimum
8.625%a)b |
|
|
1,398 |
|
|
1,580 |
|
|
Sterling
5.75% bonds 2028 |
|
|
608 |
|
|
607 |
|
|
Sterling
3.5% indexed linked notes 2025 |
|
|
301 |
|
|
291 |
|
|
Sterling
8.625% bonds 2020 |
|
|
297 |
|
|
297 |
|
|
Sterling
8.0% (2006: 7.75%) notes 2016 (minimum 7.5%a) |
|
|
712 |
|
|
709 |
|
|
Euro
7.375% (2006: 7.125%) notes 2011 (minimum 6.875%a)b |
|
|
768 |
|
|
790 |
|
|
US
dollar 8.625% (2006: 8.375%) notes 2010 (minimum
8.125%a)b |
|
|
1,515 |
|
|
1,713 |
|
|
US
dollar 8.765% bonds 2009c |
|
|
108 |
|
|
120 |
|
|
US
dollar 7% notes 2007c |
|
|
542 |
|
|
624 |
|
|
Sterling
7.375% notes 2006 (minimum 7.125%a) |
|
|
– |
|
|
409 |
|
|
|
|
|
|
|
|
|
|
Total
listed bonds, debentures and notes |
|
|
6,249 |
|
|
7,140 |
|
|
|
|
|
|
|
|
|
|
Finance
leases |
|
|
567 |
|
|
845 |
|
|
|
|
|
|
|
|
|
|
Commercial
paperb,d |
|
|
794 |
|
|
472 |
|
|
Sterling
bank loans due 2007-2009 (average effective interest
rate 10.4% (2006: 9.7%)) |
|
|
147 |
|
|
240 |
|
|
Sterling
floating rate note 2007-2009 (average effective
interest rate 4.3% (2006: 4.1%)) |
|
|
42 |
|
|
49 |
|
|
Sterling
floating rate loan 2007-2009 (average effective
interest rate 5.5% (2006: 4.6%)) |
|
|
724 |
|
|
1,003 |
|
|
Preference
shares |
|
|
– |
|
|
5 |
|
|
Other
loans 2007-2010 |
|
|
16 |
|
|
– |
|
|
Bank
overdrafts (of which £49 million (2006:
£171 million) had a legally enforceable
right of set off – see note 9) |
|
|
51 |
|
|
181 |
|
|
|
|
|
|
|
|
|
|
Total
other loans and borrowings |
|
|
1,774 |
|
|
1,950 |
|
|
|
|
|
|
|
|
|
|
Total
loans and other borrowings |
|
|
8,590 |
|
|
9,935 |
|
|
|
|
|
|
|
|
|
| a |
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.
|
| b |
Hedged
in a designated cash flow hedge. |
| c |
Hedged
in a designated cash flow and fair value hedge. |
| d |
Commercial
paper is denominated in sterling (2007: £25
million, 2006: £35 million), US dollar (2007:
£nil, 2006: £66 million) and euro (2007:
£769 million, 2006: £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 borrowings’ 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 2007 and 2006 are unsecured.
| |
|
2007 |
|
2006 |
|
| |
|
|
|
|
|
| |
|
|
Carrying
amount
£m |
|
|
Effect
of hedging
and interest
£m |
a
|
|
Principal
repayments
at hedged rates
£m |
|
|
Carrying
amount
£m |
|
|
Effect
of hedging
and interest
£m |
a
|
|
Principal
repayments
at hedged rates
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repayments
fall due as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Within
one year, or on demand
|
|
|
2,203 |
|
|
(132 |
) |
|
2,071 |
|
|
1,940 |
|
|
(190 |
) |
|
1,750 |
|
|
Between
one and two years
|
|
|
330 |
|
|
1 |
|
|
331 |
|
|
1,182 |
|
|
(3 |
) |
|
1,179 |
|
|
Between
two and three years
|
|
|
340 |
|
|
21 |
|
|
361 |
|
|
337 |
|
|
– |
|
|
337 |
|
|
Between
three and four years
|
|
|
2,250 |
|
|
271 |
|
|
2,521 |
|
|
369 |
|
|
8 |
|
|
377 |
|
|
Between
four and five years
|
|
|
12 |
|
|
– |
|
|
12 |
|
|
2,467 |
|
|
55 |
|
|
2,522 |
|
|
After
five years
|
|
|
3,454 |
|
|
242 |
|
|
3,696 |
|
|
3,628 |
|
|
63 |
|
|
3,691 |
|
|
Total
due for repayment after more than one year
|
|
|
6,386 |
|
|
535 |
|
|
6,921 |
|
|
7,983 |
|
|
123 |
|
|
8,106 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
repayments
|
|
|
8,589 |
|
|
403 |
|
|
8,992 |
|
|
9,923 |
|
|
(67 |
) |
|
9,856 |
|
|
Fair
value adjustments for hedged risk
|
|
|
1 |
|
|
|
|
|
|
|
|
12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
loans and other borrowings
|
|
|
8,590 |
|
|
|
|
|
|
|
|
9,935 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
| |
|
|
2007 |
|
|
2006 |
|
|
2007 |
|
|
2006 |
|
| |
|
|
£m |
|
|
£m |
|
|
£m |
|
|
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts
payable under finance leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Within
one year
|
|
|
329 |
|
|
361 |
|
|
303 |
|
|
318 |
|
|
In
the second to fifth years inclusive
|
|
|
123 |
|
|
391 |
|
|
56 |
|
|
316 |
|
|
After
five years
|
|
|
415 |
|
|
430 |
|
|
208 |
|
|
211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
867 |
|
|
1,182 |
|
|
567 |
|
|
845 |
|
|
Less:
future finance charges
|
|
|
(300 |
) |
|
(337 |
) |
|
– |
|
|
– |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
finance lease obligations
|
|
|
567 |
|
|
845 |
|
|
567 |
|
|
845 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The group’s
obligations under finance leases are secured by the
lessors’ title to the leased assets.
|
