SAPPI LIMITED

SAPPI
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS (Continued)
for the year ended September 2010
20. INTEREST-BEARING BORROWINGS (Continued)
As
previously
reported Adjustment Adjusted
Secured borrowings** ................... 1,350 570 1,920
Unsecured borrowings ................... 1,977 (570) 1,407
Total ................................ 3,327 — 3,327
** Mortgage and pledge over trade receivables and certain assets of US$1,849 million was previously disclosed as
US$1,321 million, and capitalized lease liabilities of US$71 million was previously disclosed as US$29 million.
The repayment profile of the interest-bearing borrowings is as follows:
Payable in the year ended September:
2010* ............................................ — 601
2011* ............................................ 691 261
2012 ............................................. 892 890
2013 ............................................. 352 338
2014 ............................................. 842 895
2015 (September 2009: thereafter) ....................... 7 342
Thereafter ......................................... 224 —
3,008 3,327
* Included in the US$691 million reflected as payable in 2010 is US$447 million debt relating to securitization
funding (2009: US$400 million included in US$601 million) which has the character of a short-term revolving
facility but is expected to run until 31 December 2011 under the existing contractual arrangements, and the
intention is to renew this arrangement well ahead of maturity.
Capitalized lease liabilities
Finance leases are primarily for plant and equipment. Lease terms generally range from 5 to
10 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 2010, the aggregate amounts of minimum lease payments and the related
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