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Analysis of bank and bond debt

12 Months Ended

Dec. 31, 2023

C7. Analysis of bank and bond debt

Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are classified as current liabilities unless the Group has a continuing right to defer settlement of the liability for at least 12 months after the balance sheet date.

The Group’s bank debt facilities comprise:

Facility

Drawn at

Interest rate

Facility

Drawn at

Interest rate

amount

year end

Headroom

at year end

amount

year end

Headroom

at year end

2023

2022

£m

Non-current

$700m term loan due October 2025

550

—

5.94

579

—

4.90

$1.0bn RCF due October 2028

785

—

785

0.14

827

—

827

0.14

The RCF was undrawn throughout 2022 and 2023. There are no financial covenants on the RCF or any other debt facility.

Medium-term notes and bond debt comprises:


	Bond interest	Effective hedged	Bond interest		Effective hedged
	coupon	interest rate	coupon		interest rate
	2023	2023	2022		2022
Current
€400m bond due November 2024	Fixed 0.950%	Fixed 3.60%	Fixed 0.950	%	Fixed 3.21	%
Non-current
€500m bond due May 2026	Fixed 0.875%	Fixed 2.80%	Fixed 0.875	%	Fixed 1.78	%
€850m bond due June 2027	Fixed 3.875%	Fixed 5.01%	Fixed 3.875	%	Fixed 3.98	%
€600m bond due October 2028	Fixed 0.500%	Fixed 2.23%	Fixed 0.500	%	Fixed 1.30	%
€600m bond due June 2030	Fixed 4.375%	Fixed 4.48%	Fixed 4.375	%	Fixed 4.38	%
£400m bond due June 2032	Fixed 5.000%	Fixed 5.20%	Fixed 5.000	%	Fixed 5.11	%
Average cost of bond debt at year-end rates		3.97%			3.28	%

The effective hedged interest rate reflects the interest rate payable after the impact of interest due from cross-currency swaps. The Group’s hedging strategy is to hold foreign currency debt in proportion to foreign currency profit and cash flows, which are mainly in euro and US dollar. As a result, the Group has swapped a portion of the bonds it has issued into US dollars, thus increasing the effective hedged interest rate.

The Group considers the fair value of other current liabilities to be equal to the carrying value.