2009 Annual Report - CRH

25. Analysis of Net Debt continued
Interest profile and analysis of gross debt and effective interest rates
31st December 2009
The fixed rate interest-bearing loans and borrowings including the impact of derivative financial instruments (interest rate and cross-currency swaps) as at 31st
December 2009 are as follows:
US Pound Swiss
euro Dollar Sterling Franc Other (ii) Total
€m €m €m €m €m €m
Interest-bearing loans and borrowings - fixed rate as above (iii) (775) (3,837) (282) (1) (5) (4,900)
Impact of derivative financial instruments on fixed rate debt (568) 2,306 282 - - 2,020
Net fixed rate interest-bearing loans and borrowings (1,343) (1,531) - (1) (5) (2,880)
Weighted average fixed interest rates 6.4% 6.3% - 5.0% 4.6% 6.3%
Weighted average fixed periods - years 4.0 7.6 - 1.7 4.7 5.9
Gross debt by major currency - analysis of effective interest rates
- interest rates excluding derivative financial instruments 6.3% 6.6% 7.7% 2.9% 4.0% 6.5%
- gross debt excluding derivative financial instruments (975) (3,954) (309) (5) (81) (5,324)
- interest rates including derivative financial instruments 6.2% 4.6% 1.5% 0.4% 2.4% 4.7%
- gross debt including derivative financial instruments (1,617) (2,889) (82) (357) (216) (5,161)
The equivalent disclosure for the prior year is as follows:
31st December 2008
The fixed rate interest-bearing loans and borrowings including the impact of derivative financial instruments (interest rate and cross-currency swaps) as at 31st
December 2008 are as follows:
Interest-bearing loans and borrowings - fixed rate as above (iii) (34) (4,271) (263) (4) (3) (4,575)
Impact of derivative financial instruments on fixed rate debt (1,124) 2,553 263 - (22) 1,670
Net fixed rate interest-bearing loans and borrowings (1,158) (1,718) - (4) (25) (2,905)
Weighted average fixed interest rates 5.5% 6.3% - 4.2% 6.6% 5.9%
Weighted average fixed periods - years 4.1 8.5 - 1.5 1.7 6.7
Gross debt by major currency - analysis of effective interest rates
- interest rates excluding derivative financial instruments 6.6% 6.5% 5.6% 2.9% 6.2% 6.3%
- gross debt excluding derivative financial instruments (1,570) (4,684) (669) (251) (124) (7,298)
- interest rates including derivative financial instruments 5.8% 6.1% 3.7% 2.0% 5.8% 5.6%
- gross debt including derivative financial instruments (2,919) (3,141) (127) (551) (280) (7,018)
(ii) The principal currencies included in this category are the Canadian Dollar, the Polish Zloty, the Argentine Peso, the Ukranian Hryvnya, the Israeli Shekel, the Turkish
Lira, the Chinese Renminbi and the Indian Rupee.
(iii) Of the Group’s gross fixed rate debt at 31st December 2009, €2,913 million (2008: €2,892 million) was hedged to floating rate at inception using interest rate
swaps. In accordance with IAS 39 Financial Instruments: Recognition and Measurement, hedged fixed rate debt is recorded at amortised cost adjusted for the
change in value arising from changes in underlying market interest rates and the related hedging instruments (interest rate swaps) are stated at fair value.
Adjustments to fixed rate debt values and the changes in the fair value of the hedging instrument are reflected in the Consolidated Income Statement. The balance
of gross fixed rate debt of €1,987 million (2008: €1,683 million) are financial liabilities measured at amortised cost in accordance with IAS 39.
Floating rate debt comprises bank borrowings and finance leases bearing interest at rates set in advance for periods ranging from overnight to less than one year
largely by reference to inter-bank interest rates (US$ LIBOR, Sterling LIBOR, Swiss Franc LIBOR and Euribor).
Gains and losses arising on the re-translation of net worth are dealt with in the Consolidated Statement of Comprehensive Income. Transactional currency exposures
arise in a number of the Group’s operations and these result in net currency gains and losses which are recognised in the Consolidated Income Statement and are
immaterial (with materiality defined in the context of the year-end 2009 financial statements).
CRH 101