Just group PLC | Annual Report and accounts 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
24 INVESTMENT CONTRACT LIABILITIES continued Our underlying default methodology allows for the impact of credit rating downgrades and spread widening and hence we have maintained the same methodology at 31 December 2022.
2022 % 5.67
2021 % 2.73
Valuation discount rates
Investment contracts
25 LOANS AND BORROWINGS
Carrying value
Fair value
2022 £m
2022 £m
2021 £m
2021 £m
173.6 122.5 248.5 154.7 699.3
187.8 130.1 244.7 141.6 704.2
£250m 9.0% 10 year subordinated debt 2026 (Tier 2) issued by Just Group plc £125m 8.125% 10 year subordinated debt 2029 (Tier 2) issued by Just Group plc
249.2 122.2 248.4 154.5 774.3
323.5 165.6 287.2 160.5 936.8
£250m 7.0% 10.5 year subordinated debt 2031 non-callable 5.5 years (Green Tier 2) issued by Just Group plc
£230m 3.5% 7 year subordinated debt 2025 (Tier 3) issued by Just Group plc
Total loans and borrowings
The £250m 7.0% bond is callable after October 2025. The maturity analysis in note 33(d) assumes it is called at the first possible date.
On 15 October 2020, the Group completed the issue of £250m Green Tier 2 capital via a 7.0% sterling denominated BBB rated 10.5 year, non-callable 5.5 year bonds issue, interest payable semi-annually in arrears. The bonds have a reset date of 15 April 2026 with optional redemption any time from 15 October 2025 up to the reset date. The proceeds of the issue have been used in part to finance the purchase of £75m of the £230m 3.5% 7 year subordinated debt 2025 (Tier 3) issued by the Group in 2018. The Group also has an undrawn revolving credit facility of up to £300m for general corporate and working capital purposes available until 13 June 2025. Interest is payable on any drawdown loans at a rate of SONIA plus a margin of between 1.50% and 2.75% per annum depending on the Group’s ratio of net debt to net assets.
Movements in borrowings during the year were as follows:
Year ended 31 December 2022 £m
Year ended 31 December 2021 £m
774.3
At 1 January
773.5
(76.0) (76.0)
Repayment of Just Group plc Tier 2 subordinated debt
– –
Financing cash flows
1.0 1.0
Amortisation of issue costs Non-cash movements
0.8 0.8
At 31 December
699.3
774.3
26 LEASE LIABILITIES Lease liabilities are in respect of property assets leased by the Group recognised as right-of-use assets within property, plant and equipment on the Consolidated statement of financial position. The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases of less than 12 months and leases of low value assets. Movements in lease liabilities during the year were as follows: Year ended 31 December 2022 £m Year ended 31 December 2021 £m At 1 January 3.9 6.9 Lease payments (3.0) (3.7) Financing cash flows (3.0) (3.7) New Lease 7.6 – Rent increase – 0.6 Disposal – – Interest 0.1 0.1 Non-cash movements 7.7 0.7 At 31 December 8.6 3.9
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