BT 2016 Annual Report Download - page 206

212 BT Group plc
Annual Report 2016
25. Loans and other borrowings continued
Unless previously designated in a fair value hedge relationship, all loans and other borrowings are carried in the group balance sheet and
the table above at amortised cost. The fair value of listed bonds and other long-term borrowings is £14,500m (2014/15: £10,919m)
and the fair value of finance leases is £290m (2014/15: £273m).
The fair value of the group’s bonds and other long-term borrowings is estimated on the basis of quoted market prices, based on the same
or similar issues where they exist. Where the same or similar issues do not exist, the fair value is estimated based on the calculation of
future cash flows using blended discount rates in effect at the balance sheet date.
The carrying amount of other loans and bank overdrafts equates to fair value due to the short maturity of these items.
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.
Loans and other borrowings are analysed as follows:
At 31 March
2016
£m
2015
£m
Current liabilities
Listed bonds 2,0131,422
Finance leases 813
Syndicated loan facilities 619 –
Other loans and bank overdrafts 597465
Total current liabilities 3,237 1,900
Non-current liabilities
Listed bonds 10,444 7,642
Finance leases 232 225
Bank loans 354 –
Other loans and borrowings 2 1
Total non-current liabilities 11,032 7,868
Total 14,269 9,768
The carrying values disclosed in the above table reflect balances at amortised cost adjusted for accrued interest and fair value adjustments
to the relevant loans or borrowings. These do not reflect the final principal repayments that will arise after taking account of the relevant
derivatives in hedging relationships which are reflected in the table below. Apart from finance leases, all borrowings as at 31 March 2016
and 2015 were unsecured.
The principal repayments of loans and borrowings at hedged rates amounted to £13,260m (2014/15: £9,074m) and repayments fall
due as follows:
At 31 March
2016 2015
Carrying
amount
£m
Effect of
hedging
and
interest
£m
Principal
repayments
at hedged
rates
£m
Carrying
amount
£m
Effect of
hedging
and
interest
£m
Principal
repayments
at hedged
rates
£m
Within one year, or on demand 3,237 (232) 3,005 1,900 (152) 1,748
Between one and two years 1,632 (216) 1,416 1,431 (48) 1,383
Between two and three years 1,488 (72) 1,416 1,251 (191) 1,060
Between three and four years 1,104 18 1,122 549 (51) 498
Between four and five years 1,200 (26) 1,174 1,033 89 1,122
After five years 5,429 (302) 5,127 3,461 (198) 3,263
Total due for repayment after more than one year 10,853 (598) 10,255 7,725 (399) 7,326
Total repayments 14,090 (830) 13,260 9,625 (551) 9,074
Fair value adjustmentsa179 143
Total loans and other borrowings 14,269 9,768
a In 2015/16 includes a £49m adjustment to EE’s long-term debt on acquisition to reflect it at fair value.