18. Financial liabilities – borrowings
The Group’s current and non-current borrowings are as follows:
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All figures in £ millions |
2017 | 2016 | ||||||
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Non-current |
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6.25% Global dollar bonds 2018 (nominal amount $550m) |
— | 469 | ||||||
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4.625% US dollar notes 2018 (nominal amount $300m) |
— | 254 | ||||||
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1.875% euro notes 2021 (nominal amount €500m) |
463 | 453 | ||||||
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3.75% US dollar notes 2022 (nominal amount $117m; 2016: nominal amount $500m) |
85 | 407 | ||||||
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3.25% US dollar notes 2023 (nominal amount $94m; 2016: nominal amount $500m) |
69 | 402 | ||||||
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1.375% euro notes 2025 (nominal amount €500m) |
445 | 435 | ||||||
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Finance lease liabilities |
4 | 4 | ||||||
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| 1,066 | 2,424 | |||||||
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Current |
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Due within one year or on-demand: |
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Bank loans and overdrafts |
15 | 39 | ||||||
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Finance lease liabilities |
4 | 5 | ||||||
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| 19 | 44 | |||||||
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Total borrowings |
1,085 | 2,468 | ||||||
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Included in the non-current borrowings above is £10m of accrued interest (2016: £18m). Included in the current borrowings above is £nil of accrued interest (2016: £nil).
The maturity of the Group’s non-current borrowing is as follows:
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All figures in £ millions |
2017 | 2016 | ||||||
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Between one and two years |
3 | 726 | ||||||
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Between two and five years |
549 | 454 | ||||||
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Over five years |
514 | 1,244 | ||||||
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| 1,066 | 2,424 | |||||||
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The carrying amounts and market values of borrowings are as follows:
| 2017 | 2016 | |||||||||||||||||||||||
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All figures in £ millions |
Effective interest rate |
Carrying value |
Market value |
Effective interest rate |
Carrying value |
Market value |
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Bank loans and overdrafts |
n/a | 15 | 15 | n/a | 39 | 39 | ||||||||||||||||||
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6.25% Global dollar bonds 2018 |
n/a | — | — | 6.46 | % | 469 | 468 | |||||||||||||||||
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4.625% US dollar notes 2018 |
n/a | — | — | 4.69 | % | 254 | 250 | |||||||||||||||||
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1.875% euro notes 2021 |
2.04 | % | 463 | 467 | 2.04 | % | 453 | 454 | ||||||||||||||||
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3.75% US dollar notes 2022 |
3.94 | % | 85 | 87 | 3.94 | % | 407 | 396 | ||||||||||||||||
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3.25% US dollar notes 2023 |
3.36 | % | 69 | 67 | 3.36 | % | 402 | 381 | ||||||||||||||||
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1.375% euro notes 2025 |
1.44 | % | 445 | 445 | 1.44 | % | 435 | 432 | ||||||||||||||||
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Finance lease liabilities |
n/a | 8 | 8 | n/a | 9 | 9 | ||||||||||||||||||
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| 1,085 | 1,089 | 2,468 | 2,429 | |||||||||||||||||||||
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The market values stated above are based on clean market prices at the year end or, where these are not available, on the quoted market prices of comparable debt issued by other companies. The effective interest rates above relate to the underlying debt instruments.
The carrying amounts of the Group’s borrowings before the effect of derivatives (see notes 16 and 19 for further information on the impact of derivatives) are denominated in the following currencies:
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All figures in £ millions |
2017 | 2016 | ||||||
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US dollar |
172 | 1,559 | ||||||
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Sterling |
1 | 13 | ||||||
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Euro |
911 | 892 | ||||||
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Other |
1 | 4 | ||||||
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| 1,085 | 2,468 | |||||||
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The Group has $1.75bn (£1.3bn) of undrawn capacity on its committed borrowing facilities as at 31 December 2017 (2016: $1.75bn (£1.4bn) undrawn). In addition, there are a number of short-term facilities that are utilised in the normal course of business.
All of the Group’s borrowings are unsecured. In respect of finance lease obligations, the rights to the leased asset revert to the lessor in the event of default.
The maturity of the Group’s finance lease obligations is as follows:
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All figures in £ millions |
2017 | 2016 | ||||||
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Finance lease liabilities – minimum lease payments |
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Not later than one year |
4 | 5 | ||||||
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Later than one year and not later than two years |
3 | 3 | ||||||
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Later than two years and not later than three years |
1 | 1 | ||||||
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Later than three years and not later than four years |
— | — | ||||||
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Later than four years and not later than five years |
— | — | ||||||
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Later than five years |
— | — | ||||||
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Future finance charges on finance leases |
— | — | ||||||
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Present value of finance lease liabilities |
8 | 9 | ||||||
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The present value of the Group’s finance lease obligations is as follows:
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All figures in £ millions |
2017 | 2016 | ||||||
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Not later than one year |
4 | 5 | ||||||
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Later than one year and not later than five years |
4 | 4 | ||||||
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Later than five years |
— | — | ||||||
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| 8 | 9 | |||||||
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The carrying amounts of the Group’s lease obligations approximate their fair value.