The way ahead? - Vodafone

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124 Vodafone Group Plc Annual Report 2013 Notes to the consolidated financial statements (continued) 24. Borrowings The Group’s sources of borrowing for funding and liquidity purposes come from a range of committed bank facilities and through short-term and long-term issuances in the capital markets. Our key borrowings at 31 March 2013 consist of bond and commercial paper issues and bank loans. Details of our committed facilities can be found on page 157. We manage the basis on which we incur interest on debt between fixed interest rates and floating interest rates depending on market conditions using interest rate derivatives. Fair value hedges are designated for some of the Group’s bonds where interest rate swaps have been entered to convert the basis of future cash flows to floating interest rates. The Group enters into foreign exchange contracts to mitigate the impact of exchange rate movements on certain monetary items. Carrying value and fair value information 2013 2012 Short-term Long-term Short-term Long-term borrowings borrowings Total borrowings borrowings Total £m £m £m £m £m £m Financial liabilities measured at amortised cost: Bank loans 2,929 4,281 7,210 1,635 5,624 7,259 Bank overdrafts 25 – 25 50 – 50 Redeemable preference shares – 1,355 1,355 – 1,281 1,281 Commercial paper 4,054 – 4,054 2,272 – 2,272 Bonds 2,133 15,698 17,831 1,289 14,463 15,752 Other liabilities 1 2 3,148 753 3,901 1,012 2,417 3,429 Bonds in fair value hedge relationships – 7,021 7,021 – 4,577 4,577 12,289 29,108 41,397 6,258 28,362 34,620 Notes: 1 At 31 March 2013 amount includes £1,151 million (2012: £980 million) in relation to collateral support agreements. 2 Amount at 31 March 2013 includes £1,014 million (2012: £840 million) in relation to the options disclosed in note A8, footnote 5. The amount for 2013 includes £899 million (2012: £771 million) in relation to the Piramal Healthcare option detailed on page 158. Bank loans include INR 249 billion of loans held by Vodafone India Limited (‘VIL’) and its subsidiaries (the ‘VIL Group’). The VIL Group has a number of security arrangements supporting certain licences secured under the terms of tri-party agreements between the relevant borrower, the department of telecommunications, Government of India and the agent representing the secured lenders and certain share pledges of the shares under VIL. The terms and conditions of the security arrangements mean that should members of the VIL Group not meet all of their loan payment and performance obligations, the lenders may sell the pledged shares and enforce rights over the certain licences under the terms of the tri-party agreements to recover their losses, with any remaining sales proceeds being returned to the VIL Group. Each of the eight legal entities within the VIL Group provide cross guarantees to the lenders in respect to debt contracted by the other seven. The fair value and carrying value of the Group’s short-term borrowings is as follows: Sterling equivalent nominal value Fair value Carrying value 2013 2012 2013 2012 2013 2012 £m £m £m £m £m £m Financial liabilities measured at amortised cost 9,869 4,915 10,279 4,977 10,156 4,969 Bonds: 2,094 1,267 2,150 1,288 2,133 1,289 1.15% US dollar 100 million bond due August 2012 – 63 – 63 – 63 3.625% euro 1,250 million bond due November 2012 – 1,032 – 1,051 – 1,050 6.75% Australian dollar 265 million bond due January 2013 – 172 – 174 – 176 Czech koruna floating rate note due June 2013 18 – 18 – 18 – Euro floating rate note due September 2013 646 – 647 – 645 – 5.0% US dollar 1,000 million bond due December 2013 658 – 679 – 678 – 6.875% euro 1,000 million bond due December 2013 772 – 806 – 792 – Short-term borrowings 11,963 6,182 12,429 6,265 12,289 6,258
Overview Business review Performance Governance Financials The fair value and carrying value of the Group’s long-term borrowings is as follows: Additional information 125 Vodafone Group Plc Annual Report 2013 Sterling equivalent nominal value Fair value Carrying value 2013 2012 2013 2012 2013 2012 £m £m £m £m £m £m Financial liabilities measured at amortised cost: Bank loans 4,200 5,336 4,326 5,625 4,281 5,624 Redeemable preference shares 1,086 1,032 1,020 1,199 1,355 1,281 Other liabilities 731 2,325 821 2,472 753 2,417 Bonds: 14,456 13,184 15,986 14,746 15,698 14,463 Czech koruna floating rate note due June 2013 – 18 – 18 – 18 Euro floating rate note due September 2013 – 638 – 641 – 638 5.0% US dollar 1,000 million bond due December 2013 – 625 – 669 – 657 6.875% euro 1,000 million bond due December 2013 – 763 – 834 – 786 Euro floating rate note due June 2014 949 938 952 939 951 938 4.15% US dollar 1,250 million bond due June 2014 795 755 828 808 810 773 4.625% sterling 350 million bond due September 2014 304 304 319 325 320 326 4.625% sterling 525 million bond due September 2014 525 525 552 562 541 541 5.125% euro 500 million bond due April 2015 422 417 461 463 446 442 5.0% US dollar 750 million bond due September 2015 494 469 543 528 521 505 3.375% US dollar 500 million bond due November 2015 329 313 349 335 331 314 6.25% euro 1,250 million bond due January 2016 949 938 1,091 1,094 964 953 0.9% US dollar 900 million bond due February 2016 592 – 592 – 592 – US dollar floating rate note due February 2016 461 – 460 – 461 – 2.875% US dollar 600 million bond due March 2016 395 375 416 393 394 374 5.75% US dollar 750 million bond due March 2016 494 469 561 543 536 522 4.75% euro 500 million bond due June 2016 422 417 474 469 455 455 5.625% US dollar 1,300 million bond due February 2017 856 813 995 954 937 908 1.625% US dollar 1,000 million bond due March 2017 658 625 665 624 655 621 1.25% US dollar 1,000 million bond due September 2017 658 – 654 – 655 – 5.375% sterling 600 million bond due December 2017 552 552 646 632 571 573 1.5% US dollar 1,400 million bond due February 2018 921 – 922 – 917 5% euro 750 million bond due June 2018 633 625 750 726 658 650 4.625% US dollar 500 million bond due July 2018 329 – 376 – 387 – 8.125% sterling 450 million bond due November 2018 450 450 598 589 483 485 4.375% US dollar 500 million bond due March 2021 329 313 371 348 327 310 7.875% US dollar 750 million bond due February 2030 494 469 699 648 778 751 6.25% US dollar 495 million bond due November 2032 326 310 399 377 442 424 6.15% US dollar 1,700 million bond due February 2037 1,119 1,063 1,313 1,227 1,566 1,499 Bonds in fair value hedge relationships: 6,287 3,882 6,969 4,541 7,021 4,577 2.15% Japanese yen 3,000 million bond due April 2015 21 23 22 24 21 23 5.375% US dollar 900 million bond due January 2015 592 563 641 628 633 621 4.625% US dollar 500 million bond due July 2018 – 313 – 354 – 367 5.45% US dollar 1,250 million bond due June 2019 823 782 980 920 957 898 4.65% euro 1,250 million bond due January 2022 1,055 1,042 1,270 1,203 1,236 1,172 5.375% euro 500 million bond due June 2022 422 417 530 501 558 532 2.5% US dollar 1,000 million bond due September 2022 658 – 633 – 643 – 2.95% US dollar 1,600 million bond due February 2023 1,053 – 1,050 – 1,054 – 5.625% sterling 250 million bond due December 2025 250 250 308 294 338 324 6.6324% euro 50 million bond due December 2028 42 42 94 86 77 67 5.9% sterling 450 million bond due November 2032 450 450 560 531 598 573 4.375% US dollar 1,400 million bond due February 2043 921 – 881 – 906 – Long-term borrowings 26,760 25,759 29,122 28,583 29,108 28,362 Fair values are calculated using quoted market prices or discounted cash flows with a discount rate based upon forward interest rates available to the Group at the reporting date.
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Vodafone Group Plc Annual Report fo
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Overview This year’s report: Over
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Overview Regulation Business review
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The way ahead? - Vodafone

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