Annual report 2010 - Imperial Tobacco Group

The following tables are provided in respect of borrowings and derivative financial instruments held by the Group at30 September 2009.Debt is issued in the market or markets that are most appropriate at the time of execution.Matures in financial year ending in2010 2011 2012 2013 2014 Thereafter TotalGBP equivalent at 30 September 2009 £mCapital market issuance£350m 6.875% notes due 2012 – – 350 – – – 350€1,250m 5.0% notes due 2012 – – 1,144 – – – 1,144€500m 5.125% notes due 2013 – – – – 457 – 457€1,200m 4.375% notes due 2013 – – – – 1,098 – 1,098€750m 7.25% notes due 2014 – – – – 686 – 686€500m 4.0% notes due 2015 – – – – – 457 457£450m 5.5% notes due 2016 – – – – – 450 450€1,500m 8.375% notes due 2016 – – – – – 1,372 1,372£200m 6.25% notes due 2018 – – – – – 200 200£500m 7.75% notes due 2019 – – – – – 500 500£1,000m 9.0% notes due 2022 – – – – – 1,000 1,000£600m 8.125% notes due 2024 – – – – – 600 600Interest accruals, discounts and fairvalue adjustments – – 21 – 56 159 236Total capital market issuance – – 1,515 – 2,297 4,738 8,550Bank loans and overdrafts, borrowed atLIBOR (or equivalent) plus a margin at thetime of borrowing 2,559 31 948 – – – 3,538Interest accruals 1 – (22) – – – (21)Total bank borrowings 2,560 31 926 – – – 3,517Total borrowings 2,560 31 2,441 – 2,297 4,738 12,067Derivative financial instruments are then transacted to change the debt issued into the desired currency and into floatinginterest rates per the following table:Fair value atMatures in financial year ending in30 September 20092010 2011 2012 2013 2014 Thereafter Total Asset LiabilityGBP equivalent at 30 September 2009 £mCross currency swapsReceive sterling, pay euro:Notional amount – – 350 1 – – 650 1 1,000 33 353Sterling interest rateto receive (%) – – 6.7 – – 5.6 6.0Interest margin overEURIBOR to pay (%) – – 1.3 – – 0.8 1.0Foreign exchange swapsReceive euro, pay US dollar:Notional amount 2,003 – – – – – 2,003 – 22Sterling interestrate derivativesInterest rate swaps –pay variable, receive fixed:Notional amount – – – – – 2,100 2,100 94 72Weighted average interestrate to receive (%) – – – – – 8.2 8.2Weighted average marginover LIBOR to pay (%) – – – – – 4.2 4.2135