37. Financial liabilities

The company’s medium-term and long-term financing needs are covered by an ongoing capital market issuance programme. In the context of this programme, a benchmark bond with a volume of €500 million, a seven-year term and a coupon of 1.375 per cent was issued in the euro capital market in October 2014. In addition, a €600 million bond with a term of ten years and a coupon of 1.5 per cent was placed in March 2015. The €1 billion bond with a coupon of 7.625 per cent that was due in March 2015 was repaid on time.

Short-term financing requirements are covered through the Euro Commercial Paper Programme and a commercial paper programme geared especially to French investors. Both programmes have a maximum volume of €2 billion each. The average amount utilised from both programmes in financial year 2014/15 was €1,107 million (2013/14: €782 million). As of 30 September 2015, the used volume totalled approximately €941 million (30/9/2014: €938 million).

In addition, METRO GROUP has access to syndicated credit facilities totalling €2,525 million (30/9/2014: €2,525 million) with terms ending between January 2017 and April 2019. If the credit facilities are used, the interest rates range between EURIBOR +50.0 basis points (BP) and EURIBOR +55.0 BP. The average amount drawn on the credit facilities in financial year 2014/15 was €0 million (2013/14: €0 million), the average amount drawn as of the closing date was €0 million (30/9/2014: €0 million).

The contract terms for the syndicated credit facilities provide for an increase of 5 to 10 BP in the spread if METRO GROUP’s credit rating is lowered by one step. In the event of a downgrade in METRO GROUP’s rating, the margins increase by 20 to 25 BP.

As of 30 September 2015, METRO GROUP had access to additional bilateral bank credit facilities totalling €1,719 million (30/9/2014: €1,430 million), of which €962 million (30/9/2014: €300 million) have a remaining term of up to one year. As of the closing date, €1,189 million (30/9/2014: €865 million) of the bilateral bank credit facilities had been utilised. Of this amount, €932 million (30/9/2014: €260 million) had a remaining term of up to one year.

Unutilised credit facilities of METRO GROUP

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30/9/2014

30/9/2015

 

 

 

 

 

Remaining term

 

Remaining term

€ million

Total

up to 1 year

over 1 year

Total

up to 1 year

over 1 year

Bilateral credit facilities

1,430

300

1,130

1,719

962

757

Utilisation

−865

−260

−604

−1,189

−932

−257

Unutilised bilateral credit facilities

565

40

526

530

30

500

Syndicated credit facilities

2,525

0

2,525

2,525

0

2,525

Utilisation

0

0

0

0

0

0

Unutilised syndicated credit facilities

2,525

0

2,525

2,525

0

2,525

Total credit facilities

3,955

300

3,655

4,244

962

3,282

Total utilisation

−865

−260

−604

−1,189

−932

−257

Total undrawn credit facilities

3,090

40

3,051

3,055

30

3,025

The defaulting of a lender can be covered at any time by the existing undrawn credit facilities or the available money and capital market programmes. METRO GROUP therefore does not bear any credit default risk.

METRO GROUP principally does not provide collateral for borrowings. One exception concerns the first-time consolidation of METRO PROPERTIES GmbH & Co. KG as well as its subsidiaries in 2003. As of 30 September 2015, collateral in the amount of €118 million (30/9/2014: €221 million) was provided for borrowings.

The following tables show the maturity structure of the borrowings. The carrying amounts and fair values indicated include the interest accrued when the maturity is less than one year.

Bonds

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30/9/2014

30/9/2015

 

 

 

 

 

 

Nominal values

Nominal values

Carrying amounts

Fair values

Nominal values

Nominal values

Carrying amounts

Fair values

Currency

Remaining term

in million currency

€ million

€ million

€ million

in million currency

€ million

€ million

€ million

EUR

up to 1 year

1,926

1,926

2,010

2,042

1,051

1,051

1,104

1,105

 

1 to 5 years

1,960

1,960

1,954

2,096

1,975

1,975

1,970

2,093

 

over 5 years

301

301

299

334

1,276

1,276

1,268

1,235

CHF

up to 1 year

0

0

1

1

225

206

208

210

 

1 to 5 years

225

187

186

191

0

0

0

0

 

over 5 years

0

0

0

0

0

0

0

0

USD

up to 1 year

15

12

12

12

0

0

0

0

 

1 to 5 years

0

0

0

0

0

0

0

0

 

over 5 years

0

0

0

0

0

0

0

0

Liabilities to banks
(excl. current account)

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30/9/2014

30/9/2015

 

 

 

 

 

 

Nominal values

Nominal values

Carrying amounts

Fair values

Nominal values

Nominal values

Carrying amounts

Fair values

Currency

Remaining term

in million currency

€ million

€ million

€ million

in million currency

€ million

€ million

€ million

EUR

up to 1 year

58

58

63

76

714

714

718

726

 

1 to 5 years

380

380

380

395

124

124

124

127

 

over 5 years

174

174

174

174

83

83

83

82

INR

up to 1 year

1,990

26

26

26

4,082

56

56

56

 

1 to 5 years

3,580

46

46

47

761

10

10

11

 

over 5 years

0

0

0

0

0

0

0

0

JPY

up to 1 year

8,000

58

58

58

1,970

15

15

15

 

1 to 5 years

600

4

4

4

5,335

40

40

43

 

over 5 years

0

0

0

0

0

0

0

0

TRY

up to 1 year

15

5

5

5

0

0

0

0

 

1 to 5 years

0

0

0

0

0

0

0

0

 

over 5 years

0

0

0

0

0

0

0

0

Others

up to 1 year

n/a

0

0

0

n/a

0

0

0

 

1 to 5 years

n/a

0

0

0

n/a

0

0

0

 

over 5 years

n/a

0

0

0

n/a

0

0

0

Promissory note loans

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30/9/2014

30/9/2015

 

 

 

 

 

 

Nominal values

Nominal values

Carrying amounts

Fair values

Nominal values

Nominal values

Carrying amounts

Fair values

Currency

Remaining term

in million currency

€ million

€ million

€ million

in million currency

€ million

€ million

€ million

EUR

up to 1 year

205

205

209

209

291

291

295

296

 

1 to 5 years

200

200

200

207

67

67

66

70

 

over 5 years

54

54

54

61

54

54

54

62

Redeemable loans that are shown under liabilities to banks are listed with the remaining terms corresponding to their redemption date. For remaining terms of over one year, the indicated fair value of these loans generally includes the carrying amount. The difference between the carrying amount and the fair value of the entire loan is shown in maturities up to one year.

The following table depict the interest rate structure of the borrowings:

Bonds

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30/9/2014

30/9/2015

 

 

 

 

 

 

 

Interest terms

Currency

Remaining terms

Weighted effective interest rate in % when issued

Nominal value in € million

Weighted effective interest rate in % when issued

Nominal value in € million

Fixed interest

EUR

up to 1 year

7.63

1,000

3.05

110

 

1 to 5 years

3.41

1,910

3.47

1,925

 

over 5 years

4.02

301

1.80

1,276

CHF

up to 1 year

0

1.88

206

 

1 to 5 years

1.88

187

0

 

over 5 years

0

0

Variable interest

EUR

up to 1 year

0.54

926

0.35

941

 

1 to 5 years

1.56

50

1.30

50

 

over 5 years

0

0

USD

up to 1 year

0.62

12

0

 

1 to 5 years

0

0

 

over 5 years

0

0

Liabilities to banks
(excl. current account)

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30/9/2014

30/9/2015

 

 

 

 

 

 

 

Interest terms

Currency

Remaining terms

Weighted effective interest rate in % when issued

Nominal value in € million

Weighted effective interest rate in % when issued

Nominal value in € million

Fixed interest

EUR

up to 1 year

4.55

58

1.26

714

 

1 to 5 years

3.52

380

3.37

124

 

over 5 years

3.64

174

3.61

83

INR

up to 1 year

9.92

26

9.65

56

 

1 to 5 years

10.22

46

9.78

10

 

over 5 years

0

0

TRY

up to 1 year

12.00

5

0

 

1 to 5 years

0

0

 

over 5 years

0

0

Variable interest

JPY

up to 1 year

1.78

58

1.78

15

 

1 to 5 years

1.78

4

1.78

40

 

over 5 years

0

0

Promissory note loans

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30/9/2014

30/9/2015

 

 

 

 

 

 

 

Interest terms

Currency

Remaining terms

Weighted effective interest rate in % when issued

Nominal value in € million

Weighted effective interest rate in % when issued

Nominal value in € million

Fixed interest

EUR

up to 1 year

0.75

205

1.20

222

 

1 to 5 years

3.03

105

3.44

41

 

over 5 years

4.27

54

4.27

54

Variable interest

EUR

up to 1 year

0

1.44

70

 

1 to 5 years

1.67

95

1.74

26

 

over 5 years

0

0

The fixed interest rate for short-term and medium-term borrowings and the repricing dates of all fixed-interest borrowings essentially correspond to the displayed remaining terms. The repricing dates for variable interest rates are less than one year.

The effects that changes in interest rates concerning the variable portion of borrowings have on the profit or loss for the period and equity of METRO GROUP are described in detail in no. 44 – management of financial risks.