Annual report and accounts 2008

Notes contentsNotes to the company financial statements

5. Financial liabilities — Borrowings

All figures in £ millions	2008	2007
Non-current
Bank loans and overdrafts	132	—
7% Global Dollar Bonds 2011 (nominal amount $500m)	368	264
7% Sterling Bonds 2014 (nominal amount £250m)	254	251
4.625% US Dollar notes 2018 (nominal amount $300m)	237	143
	991	658
Current
Due within one year or on demand:
Bank loans and overdrafts	352	644
10.5% Sterling Bonds 2008 (nominal amount £100m)	—	105
	352	749
Total borrowings	1,343	1,407

Included in the non-current borrowings above is £5m of accrued interest (2007: £4m).

Included in the current borrowings above is £nil of accrued interest (2007: £7m).

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

All figures in £ millions	2008	2007
Between one and two years	—	—
Between two and five years	500	264
Over five years	491	394
	991	658

As at 31 December 2008 the exposure to interest rate changes of the borrowings and amounts due to subsidiaries when the borrowings re-price is as follows:

All figures in £ millions	One year	One to five years	More than five years	Total
Re-pricing profile of borrowings	484	368	491	1,343
Amounts due to subsidiaries	1,006	243	591	1,840
Effect of rate derivatives	1,173	(254)	(919)	—
	2,663	357	163	3,183

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

All figures in £ millions	Effective interest rate	2008		2007
		Carrying amount	Market value	Carrying amount	Market value
Bank loans and overdrafts	n/a	484	484	644	644
10.5% Sterling Bonds 2008	10.53%	—	—	105	102
7% Global Dollar Bonds 2011	7.16%	368	349	264	267
7% Sterling Bonds 2014	7.20%	254	258	251	261
4.625% US Dollar notes 2018	4.69%	237	169	143	135
		1,343	1,260	1,407	1,409

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	2008	2007
US dollar	1,089	779
Sterling	254	620
Euro	—	8
	1,343	1,407