Our performance in 2009 - Sappi

2009 annual report
US$ million 2009 2008
20. Interest-bearing borrowings
Secured borrowings
– Mortgage and pledge over trade receivables and certain assets
(refer to note 24 for details of encumbered assets) 1,321 468
– Capitalised lease liabilities (refer to note 24 for details of encumbered assets) 29 29
Total secured borrowings 1,350 497
Unsecured borrowings 1,977 2,156
Total borrowings (refer to note 30) 3,327 2,653
Less: Current portion included in current liabilities 601 821
The repayment profile of the interest-bearing borrowings is as follows:
Payable in the year ended September:
2,726 1,832
2009* – 821
2010* 601 65
2011 261 629
2012 890 615
2013 338 159
2014 (September 2008: thereafter) 895 364
Thereafter 342 –
3,327 2,653
* Included in the US$601 million reflected as payable in 2010 is US$400 million debt relating to securitisation funding (2009: US$360 million included in
US$821 million) which has the character of a short-term revolving facility but is expected to run until 2012 under the existing contractual arrangements.
Capitalised lease liabilities
Finance leases are primarily for plant and equipment. Lease terms generally range from five to ten years with options to
make early settlements or renew at varying terms. At the time of entering into capital lease agreements, the commitments
are recorded at their present value using applicable interest rates. As of September 2009, the aggregate amounts of
minimum lease payments and the related imputed interest under capitalised lease contracts payable in each of the next five
financial years and thereafter are as follows:
Payable in the year
ended September:
Minimum
lease
payments Interest
2009 2008
Present
value of
minimum
lease
payments
Minimum
lease
payments Interest
141
Present
value of
minimum
lease
payments
2009 – – – 10 (3) 7
2010 23 (4) 19 4 (2) 2
2011 17 (3) 14 4 (2) 2
2012 18 (2) 16 5 (2) 3
2013 15 (2) 13 5 (1) 4
2014 (September 2008: thereafter) 6 (1) 5 12 (1) 11
Thereafter 7 (1) 6 – – –
Total future minimum
lease payments 86 (13) 73 40 (11) 29
financials