BP 2006 Annual Report Download - page 152

150
38 Finance debt continued
Analysis of borrowings by year of expected repayment $ million
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2006 2005
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Bank loans Other loans Total Bank loans Other loans Total
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Due after 10 years 153 3,202 3,355 – 2,842 2,842
Due within 10 years 90 62 152 18 203 221
9 years 97 329 426 21 182 203
8 years 90 301 391 24 188 212
7 years 82 318 400 26 558 584
6 years 74 896 970 34 446 480
5 years 131 674 805 35 537 572
4 years 34 653 687 35 2,223 2,258
3 years 28 4,081 4,109 98 2,219 2,317
2 years 27 3,626 3,653 256 3,018 3,274
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806 14,142 14,948 547 12,416 12,963
1 year 543 7,704 8,247 155 5,263 5,418
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1,349 21,846 23,195 702 17,679 18,381
Interest rates
The weighted average interest rate on finance debt is 5%.
The proportion of floating rate debt at 31 December 2006 was 73% of total finance debt outstanding. Aside from debt issued in the US municipal
bond markets, interest rates on floating rate debt denominated in US dollars are linked principally to the London Inter-Bank Offer Rate (LIBOR), while
rates on debt in other currencies are based on local market equivalents. The group monitors interest rate risk using a process of sensitivity analysis.
Assuming no changes to the finance debt and related hedge balances, it is estimated that a change of 1% in the general level of interest rates on
1 January 2007 would change 2007 profit before tax by approximately $180 million.
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Fixed rate Floating rate
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Weighted
average
interest
rate
%
Weighted
average
time for
which rate
is fixed
Years
Amount
$million
Weighted
average
interest
rate
%
Amount
$million
Total
$million
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2006
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US dollar 5 3 5,998 6 17,055 23,053
Sterling –––53535
Euro 3 8 61 4 134 195
Other currencies 7 8 299 8 428 727
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6,358 17,652 24,010
2005
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US dollar 7 11 665 5 18,073 18,738
Sterling –––67676
Euro –––3150150
Other currencies 9 14 157 12 41 198
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822 18,340 19,162
A further analysis of interest rates on total borrowings, excluding finance lease obligations, at 31 December, is given below.
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Weighted average
interest rate
% $ million
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2006 2005 2006 2005
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Bank and other loans – long term
US dollar 659,888 9,178
Sterling 5735 29
Euros 45177 144
Other currencies 79231 158
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10,331 9,509
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Bank and other loans – short term
Current maturities of long-term debt 3,078 3,007
Commercial paper 544,167 1,911
US Industrial Revenue/Municipal bonds 442,744 2,462
Bank loans and other borrowings 672,875 1,492
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12,864 8,872
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23,195 18,381