Associated British Foods plc – Annual report – 14 September 2019
Industry: retail, food and drink
25. Financial instruments (extract)
i) Borrowing facilities
The group has substantial borrowing facilities available to it. The undrawn committed facilities available at 14 September 2019, in respect of which all conditions precedent have been met, amounted to £1,235m (2018 – £1,249m):
Uncommitted facilities available at 14 September 2019 were:
In addition to the above facilities there are also £75m (2018 – £73m) of undrawn and available credit lines for the purposes of issuing letters of credit and guarantees in the normal course of business.
The group also has £14m (2018 – £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 18.
The group has a £1.2bn syndicated facility which matures in July 2021. In addition to the bank debt, the Company has £345m of private placement notes in issue to institutional investors in the US and Europe. At 14 September 2019, these had an average remaining duration of 2.7 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Uncommitted bank borrowing facilities are normally reaffirmed by the banks annually, although they can theoretically be withdrawn at any time.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 page 51.