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23. Financial liabilities

The carrying amounts and fair values of financial liabilities are as follows:

    2008   2007

US$ million
Estimated
fair value
Carrying
value
Estimated
fair value
Carrying
value
At fair value through profit and loss  
Trade and other payables(1) 687 687 331 331
Other financial liabilities (derivatives)(2) 1,497 1,497 586 586
Designated into fair value hedge  
Trade and other payables(1) 12 12
Borrowings 2,850 2,850 2,433 2,433
Financial liabilities at amortised cost  
Trade and other payables(1) 4,391 4,391 3,480 3,480
Borrowings 10,658 11,145 5,874 5,866
Total financial liabilities 20,083 20,570 12,716 12,708
(1)
Trade and other payables exclude tax and social security and deferred income and include other non-current payables.
(2)
Derivative instruments are analysed between those which are ‘Held for trading’ and those designated into hedge relationships in note 24.

The fair value of financial liabilities is determined by reference to quoted market prices for similar issues, where applicable, otherwise the carrying value approximates fair value.

Financial liability risk exposures are set out in note 24.

An analysis of borrowings is set out below:

      2008     2007

US$ million
Due within
one year
Due after
one year

Total
Due within
one year
Due after
one year

Total
Secured(1)
Bank loans and overdrafts 346 678 1,024 146 544 690
Obligations under finance leases(2) 12 56 68 2 76 78
Other loans 29 29
  358 734 1,092 148 649 797
Unsecured
Bonds issued under EMTN programme(3) 154 2,679 2,833 1,461 800 2,261
Bank loans and overdrafts 5,114 3,335 8,449 2,383 482 2,865
Commercial paper 1,116 1,116 1,895 1,895
Obligations under finance leases(2) 4 13 17 3 6 9
Other loans 38 450 488 5 467 472
  6,426 6,477 12,903 5,747 1,755 7,502
Total 6,784 7,211 13,995 5,895 2,404 8,299
(1)
Assets with a book value of $954 million (2007: $719 million) have been pledged as security, of which $663 million (2007: $431 million) are tangible assets, $160 million (2007: $149 million) are financial assets and $131 million (2007: $139 million) are inventories. Of these assets $284 million (2007: $22 million) were pledged in respect of project financing arrangements.
(2)
The minimum lease payments under finance leases fall due as follows:
US$ million 2008 2007
Within one year 24 13
Greater than one year, less than five years 43 42
Greater than five years 86 116
  153 171
Future finance charges on finance leases (68) (84)
Present value of finance lease liabilities 85 87
(3)
The Group issued $2,404 million of bonds under the EMTN programme in 2008 (2007: $9 million). All notes are guaranteed by Anglo American plc.

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