Holiday Inn 2012 Annual Report Download - page 118

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116 IHG Annual Report and Financial Statements 2012
Notes to the Group Financial Statements continued
22. Loans and other borrowings continued
£250m 6% bonds 2016
The 6% fixed interest sterling bonds were issued on 9 December 2009 and are repayable in full on 9 December 2016. Interest is payable
annually on 9 December in each year commencing 9 December 2010 to the maturity date. The bonds were initially priced at 99.465% of
face value and are unsecured. Currency swaps were transacted at the same time the bonds were issued in order to swap the proceeds
and interest flows into US dollars (see note 23 for further details).
£400m 3.875% bonds 2022
The 3.875% fixed interest sterling bonds were issued on 28 November 2012 and are repayable on 28 November 2022. Interest is payable
annually on 28 November in each year commencing 28 November 2013 to the maturity date. The bonds were initially priced at 98.787%
of face value and are unsecured.
Unsecured bank loans
Unsecured bank loans are borrowings under the Group’s Syndicated Facility and its short-term bilateral loan and overdraft facilities. The
Syndicated Facility comprises a $1.07bn five-year revolving credit facility that matures in November 2016. These facilities contain financial
covenants and, as at the end of the reporting period, the Group was not in breach of these covenants, nor had any breaches or defaults
occurred during the year. Borrowings under the facilities are classified as non-current when the facilities have more than 12 months to
expiry. The facility was undrawn at the year end.
Facilities provided by banks
2012 2011
Utilised Unutilised Total Utilised Unutilised Total
$m $m $m $m $m $m
Committed 5 1,070 1,075 105 970 1,075
Uncommitted – 96 96 – 79 79
5 1,166 1,171 105 1,049 1,154
2012 2011
$m $m
Unutilised facilities expire:
Within one year 96 79
After two but before five years 1,070 970
1,166 1,049
Utilised facilities are calculated based on actual drawings and may not agree to the carrying value of loans held at amortised cost.
23. Derivative financial instruments
2012 2011
$m $m
Currency swaps 19 39
Forward foreign exchange contracts (2) (3)
17 36
Analysed as:
Current assets (2) (3)
Non-current liabilities 19 39
17 36
Derivatives are recorded at their fair values, estimated using discounted future cash flows taking into consideration interest and exchange
rates prevailing on the last day of the reporting period.