Financial liabilities - borrowings

12 Months Ended

Dec. 31, 2019

Text block [abstract]

Financial liabilities - borrowings

18. Financial liabilities – borrowings

The Group’s current and non-current borrowings are as follows:

All figures in £ millions	2019		2018
Non-current
1.875% euro notes 2021 (nominal amount €195m; 2018 nominal amount €250m)		170		233
3.75% US dollar notes 2022 (nominal amount $117m)		89		92
3.25% US dollar notes 2023 (nominal amount $94m)		72		74
1.375% euro notes 2025 (nominal amount €300m)		262		273
Revolving credit facility		230		—
Lease liabilities (see note 35)		749		2
		1,572		674
Current
Due within one year or on demand:
Bank loans and overdrafts		3		43
Lease liabilities (see note 35)		89		3
		92		46
Total borrowings		1,664		720

Included in the non-current borrowings above is £5m of accrued interest (2018: £6m). Included in the current borrowings above is £nil of accrued interest (2018: £nil).

Prior to 1 January 2019 the Group leased certain equipment under a number of finance lease agreements which were included within Financial liabilities – borrowings. On the application of IFRS 16 at 1 January 2019 (see note 1b) all lease liabilities are now included within Financial liabilities – borrowings.

The maturities of the Group’s non-current borrowings are as follows:

All figures in £ millions	2019		2018
Between one and two years		251		1
Between two and five years		609		400
Over five years		712		273
		1,572		674

The carrying amounts and market values of borrowings are as follows:

	2019							2018
All figures in £ millions	Effective interest rate			Carrying value		Market value		Effective interest rate			Carrying value		Market value
Bank loans and overdrafts		n/a			3		3		n/a			43		43
1.875% euro notes 2021		2.04	%		170		170		2.04	%		233		233
3.75% US dollar notes 2022		3.94	%		89		90		3.94	%		92		91
3.25% US dollar notes 2023		3.36	%		72		72		3.36	%		74		71
1.375% euro notes 2025		1.44	%		262		263		1.44	%		273		266
Revolving credit facility		1.075	%		230		230		—			—		—
Lease liabilities		n/a			838		838		n/a			5		5
					1,664		1,666					720		709

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:

All figures in £ millions	2019		2018
US dollar		539		188
Sterling		576		23
Euro		442		506
Other		107		3
		1,664		720

The Group has $0.9bn (£0.7bn) of undrawn capacity on its committed borrowing facilities as at 31 December 2019 (2018: $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 lease obligations, the rights to the leased asset revert to the lessor in the event of default.