Skip Links

Menu Links

Notes to the Company Financial Statements

4 Financial liabilities - Borrowings

4 Financial liabilities – Borrowings
All figures in £ millions 2006 2005
Non-current    
6.125% Euro Bonds 2007 (nominal amount €591m) 436
10.5% Sterling Bonds 2008 (nominal amount £100m) 105 107
7% Global Dollar Bonds 2011 (nominal amount $500m) 266 307
7% Sterling Bonds 2014 (nominal amount £250m) 251 250
4.625% US Dollar notes 2018 (nominal amount $300m) 139 161
  761 1,261
Current    
Due within one year or on demand:    
Bank loans and overdrafts 363 366
6.125% Euro Bonds 2007 (nominal amount €591m) 421
Total borrowings 1,545 1,627
Included in the non-current borrowings above is £10m of accrued interest (2005: £33m).
Included in the current borrowings above is £22m of accrued interest (2005: £nil).

The maturity of the Company's non-current borrowings is as follows:

The maturity of the Company’s non-current borrowings is as follows:
All figures in £ millions 2006 2005
Between one and two years 105 436
Between two and five years 266 107
Over five years 390 718
  761 1,261

As at 31 December 2006 the exposure of the borrowings of the Company to interest rate changes when the borrowings re-price is as follows:

As at 31 December 2006 the exposure of the borrowings of the Company to interest rate changes when the
borrowings re-price is as follows:
All figures in £ millions Total One year One to
five years
More than
five years
Carrying value of borrowings 1,545 784 371 390
Effect of rate derivatives 629 (221) (408)
  1,545 1,413 150 (18)

The carrying amounts and market values of non-current borrowings are as follows:

4 Financial liabilities – Borrowings continued
The carrying amounts and market values of non-current borrowings are as follows:
All figures in £ millions Effective
interest rate
Carrying
amount
2006
Market
value
2006
Carrying
amount
2005
Market
value
2005
6.125% Euro Bonds 2007 6.18% 436 419
10.5% Sterling Bonds 2008 10.53% 105 106 107 113
7% Global Dollar Bonds 2011 7.16% 266 269 307 310
7% Sterling Bonds 2014 7.20% 251 265 250 282
4.625% US Dollar notes 2018 4.69% 139 135 161 155
    761 775 1,261 1,279

The market values are based on clean market prices at the year end or, where these are not available, on the quoted market prices of comparable debt issued by other companies. The effective interest rates above relate to the underlying debt instruments.

The carrying amounts of the Company’s borrowings are denominated in the following currencies:

The carrying amounts of the Company’s borrowings are denominated in the following currencies:
All figures in £ millions 2006 2005
US dollar 462 834
Sterling 654 357
Euro 429 436
  1,545 1,627

Back to top ^