BT 2009 Annual Report Download - page 112

ADDITIONAL INFORMATION FINANCIAL STATEMENTS REPORT OF THE DIRECTORS BUSINESS AND FINANCIAL REVIEWS OVERVIEW
FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
110 BT GROUP PLC ANNUAL REPORT & FORM 20-F
16. Loans and other borrowings
2009 2008
£m £m
Sterling 6.375% bonds June 2037b521 521
US dollar 9.125% (2008: 9.125%) notes December 2030 (minimum 8.625%a)b1,914 1,380
Sterling 5.75% bonds December 2028 608 608
Sterling 3.5% indexed linked notes April 2025 330 315
Sterling 8.625% bonds March 2020 298 298
US dollar 5.95% bonds January 2018b777 563
Sterling 6.625% bonds June 2017b524 524
Sterling 8.0% (2008: 8.0%) notes December 2016 (minimum 7.5%a) 713 712
Euro 6.5% bonds July 2015b973 –
Euro 5.25% bonds June 2014b723 622
Euro 5.25% bonds January 2013b935 812
US dollar 5.15% bonds January 2013b599 434
Euro 7.375% (2008: 7.375%) notes February 2011 (minimum 6.875%a)b1,051 903
US dollar 8.625% (2008: 8.625%) notes December 2010 (minimum 8.125%a)b2,074 1,496
US dollar 8.765% bonds August 2009c149 110
Total listed bonds, debentures and notes 12,189 9,298
Finance leases 332 320
Commercial paperb,d 715 107
Sterling 6.35% bank loan due August 2012 312 312
Sterling 10.4% bank loan due September 2009 140 140
Sterling floating rate note 2008-2009 (average effective interest rate 4.2% (2008: 5.2%)) 28 36
Sterling floating rate loan 2008-2009 (average effective interest rate in 2008: 6.7%) – 402
Sterling floating rate loan 2008 (average effective interest rate in 2008: 6.3%) – 351
Sterling floating rate loan 2008 (average effective interest rate in 2008: 6.4%) – 100
Other loans 2008-2012 615
Bank overdrafts (of which £160m (2008: £256m) had a legally enforceable right of set off – see note 9) 185 261
Total other loans and borrowings 1,386 1,724
Total loans and other borrowings 13,907 11,342
aThe interest rate payable on these notes will be subject to adjustment from time to time if either Moody’s or Standard and Poor’s (S&P) reduce the rating ascribed to the group’s senior unsecured debt below
A3 in the case of Moody’s or below A- in the case of S&P. In this event, the interest rate payable on the notes and the spread applicable to the floating notes will be increased by 0.25% for each ratings
category adjustment by each rating agency. In addition, if Moody’s or S&P subsequently increase the ratings ascribed to the group’s senior unsecured debt, then the interest rate then payable on notes and
the spread applicable to the floating notes will be decreased by 0.25% for each rating category upgrade by each rating agency, but in no event will the interest rate be reduced below the minimum interest
rate reflected in the above table. On 31 March 2009, both Moody’s and S&P downgraded BT’s credit rating by one ratings category to Baa2 and BBB, respectively. At the next coupon date in the 2010
financial year, the rate payable on these bonds will therefore increase by 0.5 percentage points.
bHedged in a designated cash flow hedge.
cHedged in a designated cash flow and fair value hedge.
dCommercial paper is denominated in Sterling of £209m (2008: £nil) and Euros of £506m (2008: £107m).
The interest rates payable on loans and borrowings disclosed above reflect the coupons on underlying issued loans and borrowings and not
the interest rates achieved through applying associated currency and interest rate swaps in hedge arrangements.
The carrying values disclosed above reflect balances at amortised cost adjusted for deferred and current fair value adjustments to the
relevant loans or borrowings’ hedged risk in a fair value hedge. This does not reflect the final principal repayment that will arise after
taking account of the relevant derivatives in hedging relationships which is reflected in the table below. Apart from finance leases, all
borrowings as at 31 March 2009 and 2008 were unsecured.
2009 2008
Effect of Principal Effect of Principal
Carrying hedging repayments at Carrying hedging and repayments at
amount and interestahedged rates amount interestahedged rates
£m £m £m £m £m £m
Repayments fall due as follows:
Within one year, or on demand 1,542 (352) 1,190 1,524 (264) 1,260
Between one and two years 3,098 (551) 2,547 278 22 300
Between two and three years 10 – 10 2,363 157 2,520
Between three and four years 1,829 (380) 1,449 12 – 12
Between four and five years 14 – 14 1,536 (86) 1,450
After five years 7,412 (799) 6,613 5,626 164 5,790
Total due for repayment after more than
one year 12,363 (1,730) 10,633 9,815 257 10,072
Total repayments 13,905 (2,082) 11,823 11,339 (7) 11,332
Fair value adjustments for hedged risk 2 3
Total loans and other borrowings 13,907 11,342
aAdjustments for hedging and interest reflect the impact of the currency element of derivatives and adjust the repayments to exclude interest recognised in the carrying amount.
FINANCIAL STATEMENTS