Unilever 2005 Annual Report Download - page 112

Unilever Annual Report and Accounts 2005 109
Notes to the consolidated accounts
Unilever Group
18 Borrowings (continued)
Undrawn committed facilities
Unilever had the following undrawn committed facilities at 31 December 2005:
• revolving 364-day bilateral credit facilities of in aggregate US $3 958 million (2004: US $3 603 million) with a 364-day term out;
• revolving five-year bilateral credit facilities of in aggregate US $334 million (2004: US $334 million);
• revolving 364-day notes commitments of US $200 million (2004: US $200 million) with the ability to issue notes with a maturity up to
364 days; and
• 364-day bilateral money market commitments of in aggregate US $1 725 million (2004: US $2 080 million), under which the underwriting
banks agree, subject to certain conditions, to subscribe for notes with maturities of up to three years.
The facilities that matured in December 2005 have been renewed until November 2006 and December 2006.
Interest rate
The average interest rate on short-term borrowings in 2005 was 3.0% (2004: 3.1%).
Interest rate profile and currency analysis of financial liabilities
The interest rate profiles of the Group’s financial liabilities analysed by principal currency are set out in the table below:
€ million € million € million
Fixed Fixed Fixed Floating Floating
rate rate rate rate rate Total
Weighted Weighted
average average Interest
interest fixing rate for
rate period 2006
Liabilities – 2005
Euro(f) 1 402 3.5% 6.3 years 1 066 2.8% 2 468
Sterling 192 5.4% 0.5 years (153) 4.6% 39
US dollar 4 112 6.6% 12.1 years 2 262 4.8% 6 374
Japanese yen 24.0% 1.5 years 436 0.1% 438
Thai baht 161 3.2% 1.9 years 96 5.2% 257
Other 127 13.5% 4.8 years 2 913 4.6% 3 040
Total 5 996 6 620 12 616(g)
Liabilities – 2004
Euro 214 4.4% 0.8 years 2 219 2 433
Sterling 79 5.4% 1.9 years 130 209
US dollar 5 690 6.6% 8.3 years 3 725 9 415
Japanese yen – 452 452
Thai baht 153 3.2% 2.7 years 123 276
Other 434 9.8% 1.6 years 3 099 3 533
6 570 9 748 16 318
Foreign currency leg of currency derivatives relating to intra-group loans(h) (4 052)
Total 12 266(g)
(f) Euro borrowings include €124 million preference shares that provide for a fixed preference dividend.
(g) Includes finance lease creditors amounting to €217 million (2004: €218 million).
(h) Includes the foreign currency leg of the currency derivatives relating to our intra-group loans, amounting to €4 052 million for 2004. These
derivatives create an interest rate exposure (mainly US dollar). However, to reconcile the liability with the balance sheet, the total value is
eliminated again. The other leg of the currency derivatives is shown in note 17 as an asset.
Financial Statements