- Home
- Highlights
- Messages to Shareholders
- Business Overview
- Board of Directors
- Operating and Financial Review
- Corporate Governance
- Directors’ Reports
- Independent Reports
- Financial Statements
- Statement of Directors’ responsibilities
- Accounting policies
- Consolidated income statement
- Consolidated balance sheet
- Consolidated statement of recognised income and expense
- Consolidated cash flow statement
- Notes to the accounts
- Company Financial Statements
- General Information
- Shareholder Information
Financial Statements
27. Borrowings
The following table analyses borrowings, excluding bank overdrafts:
| 2007 £m |
2006 £m |
|
|---|---|---|
| Current: | ||
| Bank loans | 136 | 717 |
| Bonds | 849 | 1,982 |
| Finance leases | 10 | 14 |
| Other loans | 30 | 126 |
| 1,025 | 2,839 | |
| Non-current: | ||
| Bank loans | 930 | 550 |
| Bonds | 13,544 | 9,485 |
| Finance leases | 92 | 115 |
| Other loans | 120 | 137 |
| 14,686 | 10,287 | |
| Total borrowings | 15,711 | 13,126 |
Total borrowings are repayable as follows:
| 2007 £m |
2006 £m |
|
|---|---|---|
| In one year or less | 1,025 | 2,839 |
| In more than one year, but not more than two years | 1,869 | 404 |
| In more than two years, but not more than three years | 1,011 | 1,288 |
| In more than three years, but not more than four years | 748 | 1,090 |
| In more than four years, but not more than five years | 1,411 | 294 |
| In more than five years: | ||
| by instalments | 116 | 131 |
| other than by instalments | 9,531 | 7,080 |
| 15,711 | 13,126 |
The carrying amounts of borrowings are denominated in the following currencies:
| 2007 £m |
2006 £m |
|
|---|---|---|
| Sterling | 8,024 | 5,636 |
| US dollar | 2,443 | 2,477 |
| Euro | 4,677 | 4,023 |
| Other currencies | 567 | 990 |
| 15,711 | 13,126 |
The fair value of borrowings at 31 March 2007 was £15,913m (2006: £13,757m). Market values, where available, have been used to determine fair value. Where market values are not available, fair values have been calculated by discounting cash flows at prevailing interest rates.
Charges over property, plant and other assets were provided as collateral over borrowings totalling £418m at 31 March 2007 (2006: £607m).
The notional amount outstanding of the debt portfolio at 31 March 2007 was £16,042m (2006: £13,230m).
Collateral is placed with or received from any counterparty where we have entered into a credit support annex to the ISDA Master Agreement once the current marked-to-market valuation of the trades between the parties exceeds an agreed threshold. Included in current bank loans is £134m (2006: £240m) in respect of cash received under collateral agreements. Cash placed under collateral agreements is shown in note 21 Financial and other investments.
Obligations under finance leases at the balance sheet dates are analysed as follows:
| 2007 £m |
2006 £m |
|
|---|---|---|
| Gross finance lease liabilities repayable as follows: | ||
| In one year or less | 17 | 20 |
| In more than one year, but not more than five years | 48 | 47 |
| In more than five years | 94 | 125 |
| 159 | 192 | |
| Less: finance changes allocated to future periods | (57) | (63) |
| 102 | 129 | |
| The present value of finance lease liabilities is as follows: | ||
| In one year or less | 9 | 14 |
| In more than one year, but not more than five years | 21 | 26 |
| In more than five years | 72 | 89 |
| 102 | 129 |
The table below shows our significant bonds in issue, being £50m notional value or greater. Unless otherwise indicated, these instruments were outstanding at both 31 March 2007 and 31 March 2006.
| Issuer | Description of instrument |
| British Transco Finance Inc. | USD 300 million 6.625% Fixed Rate Instruments due 2018 |
| British Transco International Finance BV (i) | USD 350 million 7.0% Fixed Rate Instruments due 2006 |
| British Transco International Finance BV | FRF 2,000 million 5.125% Fixed Rate Instruments due 2009 |
| British Transco International Finance BV | USD 1,500 million Zero Coupon Bond due 2021 |
| National Grid Electricity Transmission plc | EUR 600 million 4.125% Fixed Rate Instruments due 2008 |
| National Grid Electricity Transmission plc | GBP 250 million 4.75% Fixed Rate Instruments due 2010 |
| National Grid Electricity Transmission plc | GBP 300 million 2.983% Guaranteed Retail Price Index-Linked Instruments due 2018 |
| National Grid Electricity Transmission plc | GBP 220 million 3.806% Retail Price Index-Linked Instruments due 2020 |
| National Grid Electricity Transmission plc | GBP 450 million 5.875% Fixed Rate Instruments due 2024 |
| National Grid Electricity Transmission plc | GBP 360 million 6.5% Fixed Rate Instruments due 2028 |
| National Grid Electricity Transmission plc | GBP 70 million 3.589% Limited Retail Price Index-Linked Instruments due 2030 |
| National Grid Electricity Transmission plc | GBP 50 million 2.817% Guaranteed Limited Retail Price Index-Linked Instruments due 2032 |
| National Grid Electricity Transmission plc | GBP 75 million 5.0% Fixed Rate Instruments due 2035 |
| National Grid Electricity Transmission plc | GBP 50 million 2.2280% Retail Price Index-Linked Instruments due 2035 |
| National Grid Electricity Transmission plc | GBP 75 million 2.0353% Retail Price Index-Linked Instruments due 2035 |
| National Grid Electricity Transmission plc | GBP 50 million 1.8204% Retail Price Index-Linked Instruments due 2035 |
| National Grid Electricity Transmission plc | JPY 10,000 million Callable Fixed Rate Notes due 2035 |
| National Grid Electricity Transmission plc (ii) | GBP 200 million 1.6449% RPI-Linked Instruments due 2036 |
| National Grid Electricity Transmission plc (ii) | GBP 50 million 1.6747% RPI-Linked Instruments due 2036 |
| National Grid Electricity Transmission plc (ii) | GBP 50 million 1.819% RPI-Linked Instruments due 2056 |
| National Grid Electricity Transmission plc (ii) | GBP 150 million 1.823% RPI-Linked Instruments due 2056 |
| National Grid Electricity Transmission plc (ii) | GBP 50 million 1.797% RPI-Linked Instruments due 2056 |
| National Grid Electricity Transmission plc (ii) | GBP 50 million 1.6574% RPI-Linked Instruments due 2056 |
| National Grid plc (ii) | CAD 200 million 4.98% Fixed Rate Instruments due 2011 |
| National Grid plc | EUR 500 million 3.75% Fixed Rate Instruments due 2008 |
| National Grid plc (ii) | EUR 1,000 million 4.125% Fixed Rate Instruments due 2013 |
| National Grid plc | EUR 600 million 5.0% Fixed Rate Instruments due 2018 |
| National Grid plc | EUR 500 million 4.375% Fixed Rate Instruments due 2020 |
| National Grid plc (ii) | EUR 600 million Floating Rate Instruments due 2010 |
| National Grid plc (ii) | EUR 300 million Floating Rate Instruments due 2008 |
| National Grid plc (ii) | EUR 750 million Floating Rate Instruments due 2012 |
| National Grid plc (ii) | EUR 300 million Floating Rate Instruments due 2009 |
| National Grid plc (ii) | EUR 450 million Floating Rate Instruments due 2008 |
| National Grid plc (ii) | EUR 100 million 3.25% Fixed Rate Instruments due 2009 |
| National Grid plc (ii) | GBP 300 million 5.25% Fixed Rate Instruments due 2011 |
| National Grid plc (ii) | GBP 250 million 5.5% Fixed Rate Instruments due 2013 |
| National Grid plc (ii) | USD 1,000 million 6.3% Notes due 2016 |
| National Grid plc (ii) | USD 100 million Floating Rate Instruments due 2011 |
| New England Power Company | USD 135.85 million Tax Exempt Pollution Control Revenue Bonds, Variable Rate due 2020 |
| New England Power Company | USD 106.15 million Tax Exempt Pollution Control Revenue Bonds, Variable Rate due 2022 |
| NGG Finance plc (i) | EUR 1,250 million 5.25% Fixed Rate Instruments due 2006 |
| NGG Finance plc | EUR 750 million 6.125% Fixed Rate Instruments due 2011 |
| Niagara Mohawk Power Corporation (i) | USD 275 million 7.75% Taxable First Mortgage Bonds due 2006 |
| Niagara Mohawk Power Corporation | USD 200 million 8.875% Senior Notes due 2007 |
| Niagara Mohawk Power Corporation | USD 600 million 7.75% Senior Notes due 2008 |
| Niagara Mohawk Power Corporation (iii) | USD 115.71 million 7.2% Tax-Exempt First Mortgage Bonds due 2029 |
| National Grid Gas Holdings plc | GBP 503.078 million Floating Rate Instruments due 2009 |
| National Grid Gas Holdings plc | GBP 503.078 million 4.1875% Index-Linked Instruments due 2022 |
| National Grid Gas Holdings plc | GBP 503.078 million 7.0% Fixed Rate Instruments due 2024 |
| National Grid Gas plc (i) | EUR 650 million 5.25% Fixed Rate Instruments due 2006 |
| National Grid Gas plc (i) | GBP 250 million 6.125% Fixed Rate Instruments due 2006 |
| National Grid Gas plc | GBP 300 million 5.625% Fixed Rate Instruments due 2007 |
| National Grid Gas plc | GBP 250 million 8.875% Fixed Rate Instruments due 2008 |
| National Grid Gas plc | AUD 500 million 7.0% Fixed Rate Instruments due 2008 |
| National Grid Gas plc | GBP 300 million 5.375% Fixed Rate Instruments due 2009 |
| National Grid Gas plc | GBP 300 million 6.0% Fixed Rate Instruments due 2017 |
| National Grid Gas plc | GBP 275 million 8.75% Fixed Rate Instruments due 2025 |
| National Grid Gas plc | GBP 50 million 6.2% Fixed Rate Instruments due 2028 |
| National Grid Gas plc (ii) | GBP 100 million 1.6747% RPI-Linked Instruments due 2036 |
| National Grid Gas plc (ii) | GBP 115 million 1.7298% RPI-Linked Instruments due 2046 |
| National Grid Gas plc (ii) | GBP 100 million 1.6298% RPI-Linked Instruments due 2048 |
| National Grid Gas plc (ii) | GBP 100 million 1.5522% RPI-Linked Instruments due 2048 |
| National Grid Gas plc (ii) | GBP 300 million 1.754% RPI-Linked Instruments due 2036 |
| National Grid Gas plc (ii) | GBP 140 million 1.7864% Index-Linked Instruments due 2037 |
| National Grid Gas plc (ii) | GBP 50 million 1.7552% Index-Linked Instruments due 2037 |
| National Grid Gas plc (ii) | GBP 50 million 1.6783% Index-Linked Instruments due 2037 |
| National Grid Gas plc (ii) | GBP 100 million 1.9158% Index-Linked Instruments due 2037 |
| National Grid Gas plc (ii) | GBP 50 million 1.8928% Index-Linked Instruments due 2037 |
| National Grid Gas plc (ii) | GBP 65 million 1.9211% Index-Linked Instruments due 2037 |
| National Grid Gas plc (ii) | GBP 50 million 1.7642% Index-Linked Instruments due 2037 |
| National Grid Gas plc (ii) | GBP 100 million 1.7762% Index-Linked Instruments due 2037 |
(i) Matured during the year ended 31 March 2007.
(ii) Issued during the year ended 31 March 2007.
(iii) Secured against the assets of Niagara Mohawk Power Corporation.
The following significant bonds were announced to the market prior to the year end. However, they were not issued until after 31 March 2007.
| Issuer | Description of instrument (notional amount) |
| National Grid Electricity Transmission plc | GBP 50 million 1.8055% Index-Linked Instruments due 2039 |
| National Grid Electricity Transmission plc | GBP 150 million 1.8575% Index-Linked Instruments due 2039 |
| National Grid Gas plc | GBP 100 million 1.7744% Index-Linked Instruments due 2039 |
| National Grid Gas plc | GBP 100 million 1.8625% Index-Linked Instruments due 2039 |
Borrowing facilities
At 31 March 2007, there were bilateral committed credit facilities of £1,290m (2006: £1,340m), of which £1,290m (2006: £1,340m) were undrawn. In addition, there were committed credit facilities from syndicates of banks of £879m at 31 March 2007 (2006: £1,095m), of which £879m (2006: £1,095m) were undrawn. An analysis of the maturity of these undrawn committed facilities is shown below:
Undrawn committed borrowing facilities
| 2007 £m |
2006 £m |
|
|---|---|---|
| Expiring: | ||
| In one year or less | 762 | 50 |
| In more than one year, but not more than two years | - | 891 |
| In more than two years | 1,407 | 1,494 |
| 2,169 | 2,435 |
At 31 March 2007, of the unused facilities £2,052m (2006: £2,232m) was held as back-up to commercial paper and similar borrowings.