BT 1997 Annual Report Download - page 51

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NOTES TO THE FINANCIAL STATEMENTS
51
Group Company
1997 1996 1997 1996
15. Loans and other borrowings (continued) £m £m £m £m
Repayments fall due as follows:
Within one year, or on demand 483 315 2,316 607
Between one and two years 338 248 331 241
Between two and three years 418 359 450 342
Between three and four years –410 774 410
Between four and five years –165 1742
After five years 1,937 2,140 1,937 2,141
Total due for repayment after more than one year 2,693 3,322 3,493 3,876
Total loans and other borrowings 3,176 3,637 5,809 4,483
(a) The average effective interest rates in the table on page 50 take into account the effect of interest rate swaps.
The interest basis of interest rate swap agreements used, the notional amounts, their average maturities and weighted average
interest rates are shown below:
Average Average
interest interest
Notional receivable payable
Average amount rate rate
maturity £m % %
Pay fixed interest and receive variable interest Over 5 years 837 6.2 9.5
Pay variable interest and receive fixed interest Under 5 years 410 9.4 6.2
The rates of the variable rate portion of the swaps are based on LIBOR. In calculating the average variable rates, the latest rates
agreed with the counterparty on each swap have been used. Changes in LIBOR interest rates will affect the variable-rate
information disclosed above.
(b) The bonds held by HM Government were formerly a series of unsecured loan stock which was issued to the Secretary of
State in 1984, each series of which was modified in 1992 to form a corresponding series of bonds, repayable at par. In July
1994, the six series, maturing on or after 31 March 1997 then outstanding, were converted into series of bonds with new higher
face values and lower interest rates attaching to them. In August 1994, three series of bonds were repurchased by the company
from HM Government and cancelled. The increase in the face value on the three series of bonds, that were converted but not
repurchased in 1994, was being amortised over the lives of those bonds; at 31 March 1996, £42m remained to be amortised.
In August 1996, two further series of bonds were repurchased by the company for £422m and cancelled and the final bond
series with a face value of £140m was repaid on maturity on 31 March 1997. The premium of £60m paid on the repurchase,
which included the remaining unamortised increase in face values, has been charged against the profit for the year ended
31 March 1997 (note 4).