IAS 7 para 50, disclosure of undrawn (and drawn) facilities, committed and uncommitted

Associated British Foods plc  – Annual report – 12 September 2020

Industry: retail, food and drink

26. Financial instruments (extract)

i) Borrowing facilities

The group has substantial borrowing facilities available to it. The undrawn committed facilities available at 12 September 2020, in respect of which all conditions precedent have been met, amounted to £1,146m (2019 – £1,235m):

Uncommitted facilities available at 12 September 2020 were:

In addition to the above facilities there are also £98m (2019 – £75m) of undrawn and available credit lines for the purposes of issuing letters of credit and guarantees in the normal course of business.

In 2019 the group also had £14m of finance lease liabilities which are not included in the tables above, but which are included in the group’s loans and overdrafts in note 19.

The group has a £1.1bn syndicated facility which matures in July 2023. In addition to the bank debt, the Company has £336m of private placement notes in issue to institutional investors in the US and Europe. At 12 September 2020, these had an average remaining duration of 1.8 years and an average fixed coupon of 4.4%. The other significant core committed debt facilities comprise local committed facilities in Illovo.

Uncommitted bank borrowing facilities are normally reaffirmed by the banks annually, although they can theoretically be withdrawn at any time.

Refer to note 9 for details of the group’s capital commitments and to note 27 for a summary of the group’s guarantees. An assessment of the group’s current liquidity position is given in the Financial review on pages 67 to 69.