BT 2012 Annual Report Download - page 143

140 Financial statements
Notes to the consolidated financial statements
24. Loans and other borrowings
2012 2011
At 31 March £m £m
US Dollar 5.15% bonds January 2013a538 537
Euro 5.25% bonds January 2013a842 898
Euro 5.25% bonds June 2014a650 693
Euro 6.125% bonds July 2014a,b 522 557
Euro 6.5% bonds July 2015a874 930
Sterling 8.50% bonds December 2016 (2011 8.75%: minimum 7.5%c) 705 715
Sterling 6.625% bonds June 2017a525 525
US Dollar 5.95% bonds January 2018a697 695
Sterling 8.625% bonds March 2020 298 298
Sterling 3.5% index linked bonds April 2025 358 340
Sterling 5.75% bonds December 2028d686 605
US Dollar 9.625% bonds December 2030 (2011 9.875%: minimum 8.625%c)a1,719 1,714
Sterling 6.375% bonds June 2037a522 521
Total listed bonds 8,936 9,028
Finance leases 285 294
Sterling 6.375% bank loan due August 2012 312 312
Commercial papere588 71
Other loans 357 125
Bank overdrafts 826
Total other loans and borrowings 1,265 534
Total loans and borrowingsf10,486 9,856
aDesignated in a cash flow hedge relationship.
bThe interest rate payable on this bond attracts an additional 1.25% for a downgrade by one credit rating category by either or both Moody’s and S&P below Baa3/BBB–, respectively.
cThe interest rate payable on these bonds will be subject to adjustment from time to time if either Moody’s or 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 payable on the bonds and the spread applicable to the floating bonds will be increased by 0.25% for each rating 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 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. In July 2011 S&P upgraded BT’s
credit rating by one category to BBB. At the next coupon date in 2012 the rate payable on these bonds decreased by 0.25 percentage points.
dDesignated in a fair value hedge relationship.
eCommercial paper is denominated in Euros of £208m (2011: £56m) and US Dollars of £380m (2011: £15m).
fCurrent liabilities of £2,887m consist of listed bonds of £1,366m (2011: £nil), Sterling bank loans of £300m (2011: £nil), bank overdrafts of £8m (2011: £26m), commercial paper of £588m (2011:
£71m), finance leases of £15m (2011: £2m), other loans of £355m (2011: £125m) and accrued interest on listed bonds of £255m (2011: £264m).
The interest rates payable on loans and borrowings disclosed above reflect the coupons on the underlying issued loans and borrowings and not the
interest rates achieved through applying associated cross-currency and interest rate swaps in hedge arrangements.
The carrying values disclosed above reflect balances at amortised cost adjusted for accrued interest and current fair value adjustments to the
relevant loans or borrowings. 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 2012 and 2011 were unsecured.
Overview
BusinessStrategy
Performance
Governance
Financial statements
Additional information Overview
BusinessStrategy
Performance
Governance
Financial statements
Additional information