Holiday Inn 2014 Annual Report Download - page 140

21. Loans and other borrowings
2014
2013
(restated1)
Current
$m
Non-current
$m
Total
$m
Current
$m
Non-current
$m
Total
$m
Bank overdrafts 107 –107 114 –114
Unsecured bank loans –359 359 –––
Secured bank loan 3–3 –44
Finance lease obligations 16 202 218 16 199 215
£250m 6% bonds 2016 –390 390 –412 412
£400m 3.875% bonds 2022 –618 618 –654 654
Total borrowings 126 1,569 1,695 130 1,269 1,399
Denominated in the following currencies:
Sterling 20 1,008 1,028 17 1,066 1,083
US dollars 87 470 557 96 199 295
Euros 12 91 103 11 –11
Other 7 – 7 6 4 10
126 1,569 1,695 130 1,269 1,399
1 Restated for the adoption of ‘Offsetting Financial Assets and Financial Liabilities’ (Amendments to IAS 32), see page 107.
Bank overdrafts
Bank overdrafts are matched by equivalent amounts of cash and cash equivalents under the Group’s cash pooling arrangements
(see note 17 for further details).
Unsecured bank loans
Unsecured bank loans are borrowings under the Group’s Syndicated Facility. Amounts are classified as non-current when the
facilities have more than 12 months to expiry. A variable rate of interest is payable on amounts drawn under the facility, which was
1.2% at 31 December 2014.
Secured bank loan
The secured bank loan relates to a New Zealand dollar mortgage which is secured on the related hotel property. $3m is repayable
by instalments (2013 $4m).
Finance lease obligations
Finance lease obligations, which relate to the 99-year lease (of which 91 years remain) on the InterContinental Boston, are payable
asfollows:
2014 2013
Minimum
lease
payments
$m
Present
value of
payments
$m
Minimum
lease
payments
$m
Present
value of
payments
$m
Less than one year 16 16 16 16
Between one and five years 64 48 64 48
More than five years 3,284 154 3,300 151
3,364 218 3,380 215
Less: amount representing finance charges (3,146) –(3,165) –
218 218 215 215
The Group has the option to extend the term of the lease for two additional 20-year terms. Payments under the lease step up at regular
intervals over the lease term. Interest is payable on the obligation at a fixed rate of 9.7%.
£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 and were subsequently closed out during 2014 (see note 22 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.
continuedNotes to the Group Financial Statements
IHG Annual Report and Form 20-F 2014
138