Investment income and financing costs

12 Months Ended

Mar. 31, 2021

Investment income and financing costs

Investment income and financing costs

 5. Investment income and financing costs 

Investment income comprises interest received from short-term investments and other receivables. Financing costs mainly arise from interest due on bonds and commercial paper issued, bank loans and the results of hedging transactions used to manage foreign exchange and interest rate movements.

	2021	2020	2019
	€m	€m	€m
Investment income:
Financial assets measured at amortised cost	306	157	286
Financial assets measured at fair value through profit and loss	24	91	147
	330	248	433
Financing costs1:
Financial liabilities measured at amortised cost
Bonds	1,722	1,580	1,194
Lease liabilities	374	330	—
Bank loans and other liabilities2	463	626	419
Interest on derivatives	(485)	(354)	(139)
Mark-to-market on derivatives	(1,070)	1,162	424
Foreign exchange	23	205	190
	1,027	3,549	2,088
Net financing costs	697	3,301	1,655

Notes:

1 Components of financing costs for 2020 and 2019 have been represented to align with the 2021 presentation, primarily combining interest costs on derivatives that were previously shown as items within hedging relationships and other liabilities. There is no impact on total financing costs.

2 Interest capitalised for the year ended 31 March 2021 was €17 million (2020: €25 million, 2019: €nil)