Vodafone 2004 Annual Report Download - page 44

Vodafone Group Plc Annual Report 2004
42
Operating and Financial Review and Prospects continued
Bonds
The Group has a 115 billion Medium Term Note programme and a $12 billion US shelf
programme, both of which are used to meet medium to long term funding
requirements. At 31 March 2004, amounts of 19.2 billion and $nil, respectively, were
in issue from these programmes.
The following table provides a summary of the Group’s bond issues, each of which
have been undertaken since 1 April 2003 for general corporate purposes, including
working capital.
Bond issues during 2004 financial year
10 April 2003
$500m 5.375% bond with maturity 30 January 2015
a500m 5.125% bond with maturity 10 April 2015
a250m 4.625% bond with maturity 31 January 2008
4 June 2003
£150m 6.25% bond with maturity 10 July 2008
a750m 5.0% bond with maturity 4 June 2018
26 June 2003
$500m 4.625% bond with maturity 15 July 2018
22 September 2003
$1,000m 5.0% bond with maturity 16 December 2013
4 December 2003
£250m 5.625% bond with maturity 4 December 2025
On 22 April 2003, Vodafone Americas, Inc. cancelled the following bonds after
repurchase by tender:
Bond buy backs in the 2004 financial year
$137.8m of $200m 6.35% bond with maturity 2005
$182.3m of $400m 7.50% bond with maturity 2006
$249.8m of $500m 6.65% bond with maturity 2008
DEM 308.4m of DEM 400m bond with maturity 2008
With respect to the US dollar bonds, a total cash payment of $658 million was made
to acquire 68.9%, 45.6% and 50.0% of the 2005, 2006 and 2008 issues
respectively. The DEM bond repurchase resulted in a total cash payment of 1175
million to acquire 77.1% of the issue.
As at 31 March 2004, the Group had a total of £12,428 million of capital market debt
in issue.
Committed facilities
The following table summarises the committed bank facilities currently available to the
Group.
Committed Bank Facilities Amounts drawn
Under the terms and conditions of the $10.4 billion bank facilities, lenders have the
right, but not the obligation, to cancel their commitments and have outstanding
advances repaid no sooner than 30 days after notification of a change of control of
the Company. The facility agreements provide for certain structural changes that do
not affect the obligations of the Company to be specifically excluded from the
definition of a change of control. This is in addition to the rights of lenders to cancel
their commitment if the Company has committed an event of default.
Substantially the same terms and conditions apply in the case of Vodafone Finance
K.K.’s ¥225 billion term credit facility, although the change of control provision is
applicable to any guarantor of borrowings under the term credit facility. As of
31 March 2004, the Company was the sole guarantor.
In addition, Vodafone Japan has fully drawn bilateral facilities totalling ¥12.1 billion
(£63 million). These bilateral bank facilities expire at various dates up to January 2007.
Furthermore, certain of the Group’s subsidiary undertakings are funded by external
facilities which are non-recourse to any member of the Group other than the borrower,
due to the level of country risk involved. These facilities may only be used to fund their
operations. Vodafone Egypt has a partly drawn syndicated bank facility of EGP 2.0
billion (£176 million) that fully expires in September 2007, Vodafone Hungary has a
partly drawn syndicated bank facility of a350 million (£234 million), drawn in or
swapped into Hungarian forints, that fully expires in December 2008 and Vodafone
Albania has committed facilities of 185 million (£57 million) that expire at various
dates up to and including October 2012.
In aggregate, the Group has committed facilities of approximately £7,366 million, of
which £5,793 million was undrawn at 31 March 2004.
The Group believes that it has sufficient funding for its expected working capital
requirements. Further details regarding the maturity, currency and interest rates of the
Group’s gross borrowings at 31 March 2004 are included in note 19 to the
Consolidated Financial Statements.
Financial assets and liabilities
Details of the Group’s treasury management and policies are set out below in
“Quantitative and Qualitative Disclosures About Market Risk”. Analyses of financial
assets and liabilities, including the maturity profile of debt, currency and interest rate
structure, are included in notes 18 and 19 to the Consolidated Financial Statements.
No drawings have been made against this facility.
The facility supports the Group’s commercial
paper programmes and may be used for general
corporate purposes including acquisitions.
26 June 2003
$4.9 billion Revolving Credit Facility,
maturing 26 June 2006.
No drawings have been made against this facility.
The facility supports the Group’s commercial
paper programmes and may be used to fund
working capital requirements.
26 June 2003
$5.5 billion 364-day Revolving
Credit Facility, maturing 25 June
2004 with an option to extend for
one year.
The facility was drawn down in full on 15 October
2002. The facility is available for general
corporate purposes, although amounts drawn
must be on-lent to Vodafone Group Plc.
29 November 2001
¥225 billion term credit facility,
maturing 15 January 2007, entered
into by Vodafone Finance K.K.