PENNON GROUP
Funding Position
The Group had a strong liquidity and funding position as at 31 March 2010 and is well placed in current financial market conditions:
- cash and deposits of £494 million (including circa £92 million of restricted cash from deposits with lenders)
- committed undrawn facilities of £200 million
- South West Water has committed funding in place to at least mid- 2011/12 and its funding requirements for the remainder of the K5 period thereafter are modest.
During the year the following finance initiatives were implemented:
- £125 million convertible bond
- £215 million term loans and Revolving Credit Facilities (RCFs) renewed
- £89 million of new term loans
- circa £200 million finance lease extended to 2052 and converted to 'bullet' repayment
- £25 million finance lease for South West Water
- £25 million 5-10 year finance lease for Viridor
- new provider for £35 million of Environment Agency bonds sourced.
£216 million of loan repayments are required during 2010/11. Refinancing of existing facilities is being progressed and £100 million of debt facilities have been established or renewed in April 2010.
The fair value benefit (i.e. the difference between the book value and fair value) of Group debt has increased over the year by £75 million to £296 million at 31 March 2010 as a result of the rise in medium and long-term gilt rates.
The Group's average debt maturity is now 23 years.
