Annual Report and Accounts 2009 - BG Group

94
Financial Statements
Notes to the accounts continued
16 CASH AND CASH EQUIVALENTS
www.bg-group.com
2009
£m
The Group The Company
Cash at bank and in hand 299 335 1 1
Cash equivalent investments 394 698 – –
2008
£m
2009
£m
2008
£m
693 1 033 1 1
Cash and cash equivalents comprise cash in hand, deposits with a maturity of three months or less and other short-term highly liquid investments that
are readily convertible into known amounts of cash.
The effective interest rates of the Group’s cash equivalent investments as at 31 December 2009 were between nil and 5.2% (2008 0.01% and 8.8%). For
further information on the interest rate composition of the Group’s financial assets see note 18, page 95.
17 BORROWINGS
The Group’s treasury policy and other borrowings information disclosed in the financing section on pages 26 to 29 of the Financial review form part of
this note.
THE GROUP
Amounts falling due within one year
Commercial paper and bonds 492 48
Bank loans and overdrafts 208 219
Obligations under finance leases 17 14
Amounts falling due after more than one year
717 281
Bonds and other loans 1 529 339
Bank loans 368 286
Obligations under finance leases 1 214 1 272
3 111 1 897
Gross borrowings 3 828 2 178
As at 31 December 2009, Comgás had pledged trade receivables of £14m (2008 £13m) as security against certain of its borrowings. In the event of default
under the loan agreements, the lender has the right to receive cash flows from the receivables pledged. Without default the entity will continue to collect
the receivables and allocate new receivables as collateral.
MATURITY AND INTEREST RATE PROFILE OF THE GROUP’S BORROWINGS
The following tables analyse the Group’s gross borrowings. These are repayable as follows:
Gross borrowings (including obligations under finance leases) Fixed rate borrowings Total gross borrowings
Within one year 16 13 717 281
Between one and two years 19 14 120 82
Between two and three years 21 15 385 82
Between three and four years 20 15 766 351
Between four and five years 24 17 91 71
After five years 899 385 1 749 1 311
999 459 3 828 2 178
For the purpose of the table above, debt with an initial maturity within one year, such as commercial paper, is treated as floating rate debt.
As part of its interest rate risk strategy the Group has entered into swaps that are designated as fair value or cash flow hedges of interest rate risk.
The disclosure above is presented after the effect of these swaps. Further information on the fair value of the swaps is included in note 18, page 95.
2009
£m
2008
£m
2009
£m
2009
£m
2008
£m
2008
£m