7 – Net finance expense
| (€ million) |
2008 |
2007 |
| Finance expense |
|
|
|
|
| Interest expense |
143.5 |
|
112.1 |
|
| Translation differences |
1.0 |
|
-0.3 |
|
| Other finance expenses |
3.1 |
|
2.4 |
|
|
|
147.6 |
|
114.2 |
|
|
|
|
|
| Finance income |
|
|
|
|
| Capitalised interest |
-9.3 |
|
-12.1 |
|
| Ineffective portion of cash flow hedges |
-0.1 |
|
-2.0 |
|
| Interest income |
-11.0 |
|
-1.3 |
|
|
|
-20.4 |
|
-15.4 |
|
|
127.2 |
|
98.8 |
Interest expense increased firstly as a result of higher interest-bearing loans and borrowings and secondly as a result of a higher effective interest rate. The average rate of interest for the capitalised interest in 2008 was 5.0 (2007: 4.7%).
Source: Annual Report 2008, Chapter Financial Statements, page 163 (PDF, 179 kB)
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