Debt investors

	FY09 ($m)	FY08 ($m)
EBITDA	1,359	2,302
Gross interest expense	(38)	(55)
Net interest income/(expense)	20	90
Gross debt	(643)	(402)
Net cash/(debt)	1,718	1,474

Our debt structure currently consists of:

• $2,430 million committed syndicated bank facility (matures June 2012/13)
• $226 million (due August 2013) and €600 million (due February 2015) of senior unsecured fixed-rate notes, issued under our $3,000 million European Medium-Term Note (EMTN) programme
• $399 million subordinated floating rate notes (due September 2015 and callable September 2010)
• $300 million fixed-rate perpetual subordinated capital securities, which qualify as Tier 1 regulatory capital.

Our strategy is to continue to diversify our funding, both in terms of sources and tenor. To that end, we intend to use the EMTN programme to access the debt capital markets when opportunities arise, either through benchmark public issues or private placements.

We will also consider accessing the debt capital markets via alternative routes if there are appropriate opportunities. We are prepared to issue debt in a range of tenors and in both fixed and floating interest rates.

Our functional currency is the US dollar and, therefore, our preference is to issue debt denominated in US dollars. However, we are prepared to issue debt in other currencies and manage the exchange rate risk separately.

Current credit ratings for Man Group plc:

	Long term senior	Ratings report
Fitch	BBB+
Moody's	Baa1
Standard and Poor's	BBB+

Innovative Tier 1 Perpetual Subordinated Capital Securities
On 7 May 2008 Man Group issued $300 million US$ RegS Fixed Rate Perpetual Subordinated Capital Securities (Capital Securities). The Capital Securities have a perpetual maturity date with optional par redemption at Man Group’s discretion on 7 May 2013 and any coupon date thereafter. The interest rate is 11% per annum quarterly in arrears and is deferrable at the discretion of Man Group.

Floating Rate Notes
The floating rate notes consist of $400 million Eurobonds issued 21 September 2005 and due 22 September 2015. The interest rate is US dollar three-month LIBOR plus 1.15% until 22 September 2010 and thereafter is US dollar three-month LIBOR plus 1.65%.  Man Group has the option to call the notes at par in September 2010.

Euro Medium Term Note Programme
Under this U.S.$3,000,000,000 Euro Medium Term Note Programme (the Programme), Man Group plc may from time to time issue notes denominated in any currency agreed between the Issuer and the relevant Dealer. The maximum aggregate nominal amount of all Notes from time to time outstanding under the Programme will not exceed U.S.$3,000,000,000. On 1 August 2008 Man Group issued $250 million fixed rate notes due August 2013 (the “2013 Notes”). Of these 2013 Notes, $233 million remain outstanding. The coupon is 6.5% per annum payable semi-annually in arrears up to and including the maturity date. On 18 February 2010 Man Group issued €600 million fixed rate notes due August 2015 (the “2015 Notes”). The 2015 Notes have a fixed coupon of 6.0% per annum payable annually in arrears up to and including the maturity date.