Skip Links

Menu Links

Notes to the Company Financial Statements

5. Financial liabilities – Borrowings

All figures in millions 2007 2006
Non-current
10.5% Sterling Bonds 2008 (nominal amount 100m) 105
7% Global Dollar Bonds 2011 (nominal amount $500m) 264 266
7% Sterling Bonds 2014 (nominal amount 250m) 251 251
4.625% US Dollar notes 2018 (nominal amount $300m) 143 139
658 761
Current
Due within one year or on demand:
Bank loans and overdrafts 644 363
6.25% Euro Bonds 2007 (nominal amount €591m) 421
10.5% Sterling Bonds 2008 (nominal amount 100m) 105
749 784
Total borrowings 1,407 1,545

Included in the non-current borrowings above is 4m of accrued interest (2006: 10m).
Included in the current borrowings above is 7m of accrued interest (2006: 22m).

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

All figures in millions 2007 2006
Between one and two years 105
Between two and five years 264 266
Over five years 394 390
658 761

As at 31 December 2007 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 1,407 749 264 394
Effect of rate derivatives 359 (7) (352)
1,407 1,108 257 42

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

All figures in millions Effective
interest
rate
Carrying
amount
2007
Market value
2007
Carrying
amount
2006
Market value
2006
10.5% Sterling Bonds 2008 10.53% 105 106
7% Global Dollar Bonds 2011 7.16% 264 267 266 269
7% Sterling Bonds 2014 7.20% 251 261 251 265
4.625% US Dollar notes 2018 4.69% 143 135 139 135
658 663 761 775

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:

All figures in millions            2007 2006
US dollar 779 462
Sterling 620 654
Euro 8 429
1,407 1,545

Back to top ^