Annual Report and Accounts 2009

Notes to the Consolidated Financial Statements for the year to 31 December 2009

19. Debenture loans

  2009
£m
2008
£m
Unsecured
9.00% US$35m notes 2009 15.2 24.7
5.73% US$110m notes 2009 47.5 76.4
5.53% US$75m notes 2011 38.0 52.1
6.625% £250m guaranteed bonds 2012 (1) 207.6 254.5
6.21% US$70m notes 2012 31.7 48.8
6.80% £30m notes 2012 22.0 30.0
4.72% US$28m notes 2013 12.5 18.6
6.31% US$110m notes 2014 50.5 76.5
6.03% US$175m notes 2014 90.0 121.5
4.98% US$38m notes 2015 16.9 25.2
6.72% US$30m notes 2017 14.0 21.1
5.29% US$30m notes 2018 13.4 19.7
6.375% £200m bonds 2019 162.6 200.0
Carrying value 721.9 969.1
 
Fair value 681.9 308.8

(1) The guarantee in respect of the 6.625% £250m guaranteed bond 2012 was released on 16 January 2004.

The descriptions presented above refer to the titles of the debenture loan issues at their original issue date.

The fair value for all debenture loans has been derived from inputs that are observable for the liability either directly or indirectly, relevant for the term and currency.

As a result of negotiations concluding in April 2009 the terms of the above debentures were changed such that they were either extended to mature on 3 July 2012 or capable of being repaid early on the same date. The coupons have also been modified to be a variable rate based on gearing tested at each quarter end. Interest rates can vary from the lowest at 7.6% to the highest at 11.2% and in accordance with the new terms a partial prepayment was made following the equity raise. Prepayment penalties have been deferred and are included in the above table.

  2009
£m
2008
£m
Repayable
Within one year or on demand 101.1
Total falling due in more than one year 721.9 868.0
  721.9 969.1

Interest rates and currencies of debenture loans:

  Fixed rate
£m
Weighted
average
interest rate
%
Weighted
average time
until maturity
years
31 December 2009
Sterling (2) 392.2 8.6 2.5
US dollars 329.7 8.1 2.5
  721.9 8.3 2.5
31 December 2008
Sterling(2) 484.5 6.53 6.2
US dollars 484.6 6.04 4.4
  969.1 6.29 5.5

(2) Interest on £100m (2008: £100m) of the 6.625% £250m guaranteed bond 2012 has been swapped from the underlying 6.625% to floating rate based on US dollar LIBOR applicable to periods of three months. The above table does not reflect the impact of these swaps.