11 Borrowings.

Analysis by nature

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	Carrying amount 2009 £m	Coupon rate 2009 %	Fair value 2009 £m	Carrying amount 2008 £m	Coupon rate 2008 %	Fair value 2008 £m
Subordinated borrowings
6.385% Sterling perpetual capital securities (Tier 1)	666	6.39	473	692	6.39	414
5.875% Sterling undated subordinated notes (Tier 2)	425	5.88	326	426	5.88	287
4.0% Euro subordinated notes 2025 (Tier 2)	498	4.00	455	539	4.00	283
10% Sterling subordinated notes 2041 (Tier 2)	308	10.00	364	–	–	–
Total subordinated borrowings	1,897		1,618	1,657		984
Senior borrowings
Bank loans 2009	–	–	–	146	6.43	146
Total senior borrowings	–	–	–	146		146
Total borrowings	1,897		1,618	1,803		1,130

As at 31 December 2009, the Company had in place a £960m syndicated committed revolving credit facility provided by a number of its key relationship banks, maturing in December 2012.

£87m of interest expense was incurred during the year (2008: £86m).

6.385% Sterling perpetual capital securities

In 2007, Legal & General Group Plc issued £600m of 6.385% Sterling perpetual capital securities. Simultaneous with the issuance, the fixed coupon was swapped into six month LIBOR plus 0.94% pa. These securities are callable at par on 2 May 2017 and every three months thereafter. If not called, the coupon from 2 May 2017 will be reset to three month LIBOR plus 1.93% pa. For regulatory purposes these securities are treated as innovative tier 1 capital. These securities have been classified as liabilities as the interest payments become mandatory in certain circumstances.

5.875% Sterling undated subordinated notes

In 2004, Legal & General Group Plc issued £400m of 5.875% Sterling undated subordinated notes. These notes are callable at par on 1 April 2019 and every five years thereafter. If not called, the coupon from 1 April 2019 will be reset to the prevailing five year benchmark gilt yield plus 2.33% pa. These notes are treated as upper tier 2 capital for regulatory purposes. These securities have been classified as liabilities as the interest payments become mandatory in certain circumstances.

4.0% Euro subordinated notes 2025

In 2005, Legal & General Group Plc issued €600m of 4.0% Euro dated subordinated notes. The proceeds were swapped into sterling. The notes are callable at par on 8 June 2015 and each year thereafter. If not called, the coupon from 8 June 2015 will reset to a floating rate of interest based on prevailing three month Euribor plus 1.7% pa. These notes mature on 8 June 2025 and are treated as lower tier 2 capital for regulatory purposes.

10% Sterling subordinated notes 2041

On 16 July 2009, Legal & General Group Plc issued £300m of 10% dated subordinated notes. The notes are callable at par on 23 July 2021 and every five years thereafter. If not called, the coupon from 23 July 2021 will be reset to the prevailing five year benchmark gilt yield plus 9.325% pa. These notes mature on 23 July 2041 and are treated as lower tier 2 capital for regulatory purposes.