Interest-bearing bonds, loans and overdrafts are initially measured at fair value (which is equal to cost at inception), and are subsequently measured at amortised cost, using the effective interest rate method. Where they are identified as a hedged item in a designated fair value hedge relationship, fair value adjustments are recognised in accordance with our policy (see note 22 ‘Capital and financial risk management’). Any difference between the proceeds net of transaction costs and the amount due on settlement or redemption of borrowings is recognised over the term of the borrowing.

 

Note:

 

 

The fair value of the Group’s financial liabilities held at amortised cost approximate to fair value with the exception of long-term bonds with a carrying value of 34,873 million (2024 40,382 million) which have a fair value of 31,325 million (202436,787 million). Fair value is based on level 1 of the fair value hierarchy using quoted market prices.

The Group’s current borrowings also included nil (2024: 1,720 million) of bank borrowings that were secured against the Group’s shareholdings in Indus Towers and Vodafone Idea (see note 12 ‘Associates and joint arrangements’ for further details of these assets) that were repaid following the realisation of proceeds from those assets. This arrangement contained an embedded derivative option which was separately fair valued and was presented within derivative assets in current assets (see note 14 ‘Trade and other receivables’).

The Group’s borrowings, which include certain bonds that have been designated in hedge relationships, are carried at 899 million (2024: 1,229 million) higher than their euro equivalent redemption value. In addition, where bonds are issued in currencies other than euros, the Group has entered into foreign currency swaps to fix the euro cash outflows on redemption. The impact of these swaps is not reflected in borrowings and would decrease the euro equivalent redemption value of the bonds by 1,132 million (2024: 1,559 million).

The Group currently have US and euro commercial paper programmes of US$15 billion (13.9 billion) and 10 billion respectively which are available to be used to meet short-term liquidity requirements. At 31 March 2025 both programmes remained undrawn. The commercial paper facilities were supported by US$4.0 billion (3.7 billion) and 4.1 billion of syndicated committed bank facilities. No amounts had been drawn under these facilities.

We have two 30 billion euro medium-term note programmes and a US shelf programme which are used to meet medium to long-term funding requirements. At 31 March 2025 the total nominal amounts in issue under these programmes split by currency were US$18.4 billion, 13.0 billion, £4.0 billion, AUS$0.3 billion, JPY10.0 billion.

At 31 March 2025 the Group had bonds outstanding with a nominal value equivalent to 35.5 billion. During the year ended 31 March 2025, bonds with a nominal value of 0.6 billion and US$3.0 billion (2.8 billion) were issued utilising the euro medium-term note and programmes. During the year bonds with nominal value US$3.3 billion (3.1 billion), 2.6 billion, NOK2.0 billion (0.2 billion), AUS$0.2 billion (0.1 billion), £0.1 billion (0.1 billion), CHF0.1 billion (0.1 billion) and HKD$0.3 billion (0.04 billion) were and bonds with a carrying value US$1.0 billion (0.9 billion) and CHF0.4 billion (0.4 billion) matured. Bonds mature between 2025 and 2086 (2024: 2024 and 2063) and have interest rates between 0.5% and 8% (2024: 0.375% and 8%).

The Group held a maximum of 2,305,697,477 (2024: 1,825,624,610) of its own shares during the year which represented 8.2% (2024: 6.3%) of issued share capital at that time.