Notes to the consolidated financial statements - analysis of items in the primary statements

21. Borrowings

  2010
£m
2009
£m
Current    
Bank loans 890 604
Bonds 1,730 1,826
Commercial paper 121 766
Finance leases 29 33
Other loans 7 7
Bank overdrafts 29 17
  2,806 3,253
Non-current    
Bank loans 2,163 3,140
Bonds 19,835 20,002
Finance leases 173 205
Other loans 147 193
  22,318 23,540
Total borrowings 25,124 26,793

Total borrowings are repayable as follows:

  2010
£m
2009
£m
In one year or less 2,806 3,253
In more than one year, but not more than two years 2,146 2,014
In more than two years, but not more than three years 1,356 2,543
In more than three years, but not more than four years 1,890 1,400
In more than four years, but not more than five years 1,862 2,457
In more than five years:    
by instalments 22 76
other than by instalments 15,042 15,050
  25,124 26,793

The fair value of borrowings at 31 March 2010 was £26,196m (2009: £25,230m). 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. The notional amount outstanding of the debt portfolio at 31 March 2010 was £25,011m (2009: £26,619m).

Charges over property, plant and other assets were provided as collateral over borrowings totalling £515m at 31 March 2010 (2009: £493m).

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 mark-to-market valuation of the trades between the parties exceeds an agreed threshold. Included in current bank loans is £501m (2009: £473m) in respect of cash received under collateral agreements. Cash placed under collateral agreements is shown in note 14.

Obligations under finance leases at the balance sheet dates are analysed as follows:

  2010
£m
2009
£m
Gross finance lease liabilities repayable as follows:    
In one year or less 30 46
In more than one year, but not more than five years 107 148
In more than five years 135 124
  272 318
Less: finance charges allocated to future periods (70) (80)
  202 238
The present value of finance lease liabilities is as follows:    
In one year or less 29 33
In more than one year, but not more than five years 86 117
In more than five years 87 88
  202 238

For further details of our bonds in issue and borrowing facilities, refer to note 34.

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