Financial Statements
Notes to the Group financial statements
for the year ended 31 March 2006
24. Loans and borrowings
| Current | Non- | Current | Non- | |
| 2006 | Current | 2005 | Current | |
| 2006 | 2005 | |||
| £m | £m | £m | £m | |
| €568m 4.125% Euronotes 2007 | – | 395 | – | 375 |
| £350m 6.375% Eurobonds 2009 | – | 356 | – | 348 |
| £350m 5.625% Euronotes 2013 | – | 342 | – | 348 |
| 4.0% Perpetual Securities – Sterling | – | 76 | – | 73 |
| 4.9% Perpetual Securities – Sterling | – | 146 | – | 150 |
| Bank loans – Sterling | 29 | – | 35 | 380 |
| Bank loans – US dollar | – | 380 | – | – |
| Bank loans – Euro | – | 371 | – | – |
| Overdrafts – Euro | 141 | – | 73 | – |
| Overdrafts – South African Rand | – | – | 15 | – |
| 170 | 2,066 | 123 | 1,674 | |
| Present value of obligations under finance leases | 4 | 1 | 6 | 2 |
| 174 | 2,067 | 129 | 1,676 |
The Group has elected to apply the provisions of IAS 32 and IAS 39 with effect from 1 April 2005. The comparative financial information is prepared in accordance with UK GAAP to the extent that it relates to recognition and measurement of financial instruments. The nature of the main adjustments that would make the information comply with IAS 32 and IAS 39 are set out in note 39.
For 2006 the effective interest rate of Euronotes, Eurobonds and Perpetual Securities is the nominal rate indicated above. The effective interest rate of bank loans and overdrafts is 4.9% and 3% respectively.
All the borrowings of the Group shown above are unsecured. Lease liabilities are effectively secured as the rights to the leased assets revert to the lessor in the event of default.
An analysis of the maturity profile for non-current items is contained in note 27.
The minimum lease payments payable under finance leases are as follows:
| 2006 £m |
2005 |
|
| Not later than one year | 4 | 6 |
| Later than one year and not later than five years | 1 | 3 |
| Total minimum lease payments | 5 | 9 |
| Future finance charges on finance leases | – | (1) |
| Present value of finance leases (as shown above) | 5 | 8 |
| The present value of the finance leases consists of: | ||
| Not later than one year | 4 | 6 |
| Later than one year and not later than five years | 1 | 2 |
| Total present value | 5 | 8 |
At 31 March 2006 the Group had undrawn committed borrowing facilities available of £530m (2005: £420m) of which £100m (2005: nil) expires within one year of the balance sheet date, and £430m (2005: £420m) expires more than two years after the balance sheet date. These facilities are in place to enable the Group to finance its working capital requirements and for general corporate purposes.
