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Net borrowings (Tables)
 12 Months Ended
Jun. 30, 2020
Disclosure of detailed information about borrowings [abstract]  
Schedule of borrowings
 
2020
£ million

 
2019
£ million

Bank overdrafts
170

 
211

Commercial paper
—

 
649

Bank and other loans
367

 
190

Credit support obligations
180

 
120

US$ 500 million floating bonds due 2020
—

 
394

US$ 500 million 3% bonds due 2020
—

 
393

€ 775 million 0% bonds due 2020
711

 
—

US$ 696 million 4.828% bonds due 2020
566

 
—

Fair value adjustment to borrowings
1

 
2

Borrowings due within one year
1,995

 
1,959

€ 775 million 0% bonds due 2020
—

 
691

US$ 696 million 4.828% bonds due 2020
—

 
538

€ 900 million 0.25% bonds due 2021
825

 
802

US$ 1,000 million 2.875% bonds due 2022(i)
812

 
785

US$ 300 million 8% bonds due 2022(i)
243

 
235

US$ 1,350 million 2.625% bonds due 2023
1,096

 
1,060

€ 600 million 0.125% bonds due 2023
548

 
533

US$ 500 million 3.5% bonds due 2023
405

 
393

US$ 600 million 2.125% bonds due 2024
487

 
—

€ 500 million 1.75% bonds due 2024
456

 
444

€ 500 million 0.5% bonds due 2024
456

 
443

US$ 750 million 1.375% bonds due 2025
606

 
—

€ 600 million 1% bonds due 2025
546

 
531

€ 850 million 2.375% bonds due 2026
776

 
755

£ 500 million 1.75% bonds due 2026
496

 
496

€ 750 million 1.875% bonds due 2027
683

 
—

€ 500 million 1.5% bonds due 2027
457

 
445

US$ 500 million 3.875% bonds due 2028
404

 
391

US$ 1,000 million 2.375% bonds due 2029
804

 
—

£ 300 million 2.875% bonds due 2029
298

 
—

US$ 1,000 million 2% bonds due 2030
807

 
—

€ 1,000 million 2.5% bonds due 2032
911

 
—

US$ 750 million 2.125% bonds due 2032
603

 
—

US$ 400 million 7.45% bonds due 2035(i)
325

 
315

US$ 600 million 5.875% bonds due 2036
483

 
468

US$ 500 million 4.25% bonds due 2042(i)
402

 
389

US$ 500 million 3.875% bonds due 2043
400

 
387

Bank and other loans
260

 
373

Fair value adjustment to borrowings
201

 
122

Borrowings due after one year
14,790

 
10,596

Total borrowings before derivative financial instruments
16,785

 
12,555

Fair value of cross currency interest rate swaps
(469
)
 
(271
)
Fair value of foreign exchange swaps and forwards
(28
)
 
(99
)
Fair value of interest rate hedging instruments
(189
)
 
(104
)
Lease liabilities(ii)
470

 
128

Gross borrowings
16,569

 
12,209

Less: Cash and cash equivalents
(3,323
)
 
(932
)
Net borrowings
13,246

 
11,277

(i)
SEC-registered debt issued on an unsecured basis by Diageo Investment Corporation, a 100% owned finance subsidiary of Diageo plc.
(ii)
In the year ended 30 June 2019 lease liabilities only includes leases that were classified as finance leases under IAS 17 - Leases.
(1) The interest rates shown are those contracted on the underlying borrowings before taking into account any interest rate hedges (see note 15).
(2) Bonds are stated net of unamortised finance costs of £86 million (2019 – £63 million; 2018 – £60 million).
(3) Bonds are reported above at amortised cost with a fair value adjustment shown separately.
(4) All bonds, medium-term notes and commercial paper issued on an unsecured basis by the group’s 100% owned subsidiaries are fully and unconditionally guaranteed on an unsecured basis by Diageo plc.
Schedule of maturity of gross borrowings before derivative financial instruments
Gross borrowings before derivative financial instruments are expected to mature as follows:
 
2020
£ million

 
2019
£ million

Within one year
1,995

 
1,959

Between one and three years
3,013

 
2,940

Between three and five years
3,134

 
2,879

Beyond five years
8,643

 
4,777

 
16,785

 
12,555
Schedule of bonds issued and repaid
During the year the following bonds were issued and repaid:
 
2020
£ million

 
2019
£ million

 
2018
£ million

Issued
 
 
 
 
 
€ denominated
1,594

 
2,270

 
1,136

£ denominated
298

 
496

 
—

US$ denominated
3,296

 
—

 
1,476

Repaid
 
 
 
 
 
€ denominated
—

 
(1,168
)
 
—

US$ denominated
(820
)
 
—

 
(1,571
)
 
4,368

 
1,598

 
1,041
Schedule of movement in net borrowings
(a) Reconciliation of movement in net borrowings
 
2020
£ million

 
2019
£ million

At beginning of the year
11,277

 
9,091

Net increase in cash and cash equivalents before exchange
(2,552
)
 
(54
)
Net increase in bonds and other borrowings(i)
4,089

 
2,331

Change in net borrowings from cash flows
1,537

 
2,277

Exchange differences on net borrowings
95

 
22

Other non-cash items(ii)
86

 
(113
)
Adoption of IFRS 16
251

 
—

Net borrowings at end of the year
13,246

 
11,277

(i)
In the year ended 30 June 2020, net increase in bonds and other borrowings excludes £6 million cash outflow in respect of derivatives designated in forward point hedges (2019 - £12 million).
(ii)
In the years ended 30 June 2020 other non-cash items are principally in respect of leases of £206 million entered into in the period partially offset by the fair value changes of cross currency interest rate swaps. In the year ended 30 June 2019 other non-cash items are principally in respect of changes in the fair value of borrowings.
Schedule of net borrowings by currency
(b) Analysis of net borrowings by currency
 
2020
 
 
2019
 
 
Cash and cash
equivalents
£ million

 
Gross
borrowings(i)
£ million

 
Cash and cash
equivalents
£ million

 
Gross
borrowings(i)
£ million

US dollar
2,649

 
(6,300
)
 
88

 
525

Euro
57

 
(3,119
)
 
70

 
(2,910
)
Sterling
19

 
(6,233
)
 
40

 
(9,308
)
Indian rupee
13

 
(253
)
 
23

 
(247
)
Kenyan shilling
28

 
(351
)
 
79

 
(223
)
Hungarian forint
3

 
(239
)
 
4

 
157

Mexican peso
16

 
(104
)
 
16

 
(78
)
South African rand
1

 
(23
)
 
23

 
(35
)
Chinese yuan
207

 
(1
)
 
249

 
9

Other(ii)
330

 
54

 
340

 
(99
)
Total
3,323

 
(16,569
)
 
932

 
(12,209
)

(i)
Includes foreign currency forwards and swaps and leases.
(ii)
Includes £100 million (Turkish lira) cash and cash equivalents in cash-pooling arrangements (2019 - £122 million (Turkish lira)).