Notes to the consolidated financial statements
20. Financial instruments continued
(m) Currency exposures
At 31 March 2009, after taking into account the effects of forward foreign exchange contracts, the Group had no currency exposures (2008: £nil).
(n) Borrowing facilities
The Group has various undrawn committed borrowing facilities. The facilities available at 31 March, in respect of which all conditions precedent have been met, are as follows:
| 31.3.2009 £m |
31.3.2008 £m |
|
| Expiring in more than one year but not more than two years | 75.0 | – |
| Expiring in more than two years but not more than four years | – | 75.0 |
| 75.0 | 75.0 |
(o) Fair values of financial assets and financial liabilities
A comparison by category of book values and fair values of the Group’s financial assets and liabilities as at 31 March is set out below:
| Book value | Fair value | ||||
| 31.3.2009 £m |
31.3.2008 £m |
31.3.2009 £m |
31.3.2008 £m |
||
| Financial assets: | |||||
| Cash and cash equivalents | 108.8 | 294.2 | 108.8 | 294.2 | |
| Short term cash deposits | 160.6 | – | 163.0 | – | |
| Financial investments | 15.4 | 17.1 | 15.4 | 17.1 | |
| Sterling loans receivable | – | 1.0 | – | 1.0 | |
| Financial liabilities: | |||||
| Overdraft | (16.5) | (27.8) | (16.5) | (27.8) | |
| Bank loans (principal of £567.4 million, 2008: £543.6 million) | (572.6) | (550.5) | (589.0) | (547.9) | |
| Subordinated loan stock | (6.6) | (6.4) | (6.6) | (6.4) | |
| Eurobonds (principal of £1,773.2 million, 2008: £1,750.9 million) | (1,807.1) | (1,788.2) | (1,578.9) | (1,819.6) | |
| Obligations under finance leases and hire purchase contracts | |||||
| (principal of £111.6 million, 2008: £89.7 million) | (111.7) | (89.8) | (111.7) | (89.8) | |
| Interest rate swaps | – | – | (11.7) | – | |
| (2,229.7) | (2,150.4) | (2,027.2) | (2,179.2) | ||
The fair values of the interest rate swaps, forward foreign currency contracts and sterling denominated long term fixed rate debt with a book value of £1,807.1 million (2008: £1,788.2 million), have been determined by reference to prices available from the markets on which the instruments involved are traded. All the other fair values shown above have been calculated by discounting cash flows at prevailing interest rates.
In the absence of an openly traded market value for the index linked bonds with a book value of £462.0 million, the fair value at the balance sheet date has been calculated by considering the remaining debt maturity, the relevant UK index linked gilt rate and an appropriate credit spread by reference to market evidence for conventional bonds.
The difference between the principal value of £2,452.2 million (2008: £2,384.2 million) and the carrying value of £2,491.4 million (2008: £2,428.5 million) are unamortised issue costs of £15.4 million (2008: £15.9 million) and a credit of £54.6 million (2008: £60.2 million) in excess of the original loan proceeds to reflect the fair value of loans owed by subsidiaries acquired in 2003.