BT 2016 Annual Report Download - page 98

Overview The Strategic Report Governance Financial statements Additional information
103
Financing and debt maturity
The main source of our cash inow in recent years has
been the cash generated from our operations.
Together with our committed bank facility of £1.5bn, we expect
that this will be our key source of liquidity for the foreseeable
future. The facility has been extended by one year and will now
mature in September 2020 with the option to extend the term in
August 2016. If agreed this will mature in September 2021.
In February 2015 we agreed a £3.6bn facility to part‑finance the
acquisition of EE. We drew £3.2bn from this facility when the deal
was completed on 29 January 2016. We repaid the majority of
the drawdown in March 2016 with proceeds from term debt of
£3,019m that we raised on the long‑term Euro market.
The £1.5bn committed bank facility remains undrawn at
31 March 2016.
Debt due within one year, at hedged rates, or on demand
is £3,005m.
Net nance expense
Adjusted net finance expense of £483m decreased by
£77m due to our average net debt and weighted average
interest rate on net debt being lower than last year.
We’ve shown below an overview of our average gross debt,
investments and cash balances, and net debt and the related
weighted average interest rates over the past three years.
The weighted average interest rate on net debt was reduced from
8.1% to 7.5% as the new debt issuances and debt acquired from
EE are at lower interest rates than the average rate of the existing
debt.
You can see a reconciliation of net finance expense to net interest
cash outow in note 26 to the consolidated financial statements.
Year ended 31 March
2016
£m
2015
£m
2014
£m
Average gross debt 9,036 9,012 9,336
Weighted average interest rate on gross debt 5.4% 6.0% 6.1%
Average investments and cash balances 2,616 2,446 1,467
Weighted average interest rate on investments 0.4% 0.4% 0.4%
Average net debt 6,422 6,566 7,869
Weighted average interest rate on net debta7.5% 8.1% 7.2%
a Excludes interest relating to unwinding of discount on provisions and derivatives not in a
designated hedge relationship.
Maturity prole of gross debt (excluding leasing) and average coupon rate
Year ended 31 March
£m
£ debt $ swapped to £ € swapped to £
1,800
1,200
1,500
600
900
300
0
2017
2025 2024 2037 2038 2036
2019 2018 2021 2020 2023 2022 2029 2028 2027 2026 2031 2030 2033 2032 2035 2034
5.2%
5.5% 3.7%
6.6%
2.3%
3.3%
2.7%
3.9%
9.5%
6.4%