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, the €50 million bond with a coupon of 3.1 per cent that was due on 25 January 2016 and the €60 million bond with a coupon of 3 per cent that was due on 1 February 2016 were repaid on time, as was the CHF 225 million bond with a coupon of 1.875 per cent that was due on 2 May 2016. In addition, an early repayment of €128 million from a €750 million bond with a coupon of 4.25 per cent maturing on 22 February 2017 was made in September 2016. As of 30 September 2016, a total of €3.1 billion had been utilised from the ongoing issuance programme.

In addition, promissory note loans totalling €158 million and €134 million, respectively, were repaid on time on 21 December 2015 and 14 March 2016, respectively, and promissory note loans totalling €55 million were partially repaid early in September 2016.

Short-term financing requirements are covered through the bonds accounted for in the Euro Commercial Paper Programme and a commercial paper programme geared especially to French investors. The maximum volume of each programme amounts to €2.0 billion. The average amount utilised from both programmes in financial year 2015/16 was €334 million (2014/15: €1,107 million). As of 30 September 2016, the used volume totalled €0 million (30/9/2015: €941 million).

In addition, METRO GROUP has access to syndicated credit facilities totalling €2,525 million (30/9/2015: €2,525 million) with terms ending between 2019 and 2021. If the credit facilities are used, the interest rates range between EURIBOR +50.0 basis points (bps) and EURIBOR +55.0 bps. The average amount drawn on the credit facilities in financial year 2015/16 was €0 million (2014/15: €0 million), the average amount drawn as of the closing date was €0 million (30/9/2015: €0 million).

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

As of 30 September 2016, METRO GROUP had access to additional bilateral bank credit facilities totalling €681 million (30/9/2015: €1,719 million), of which €437 million (30/9/2015: €962 million) had a remaining term of up to one year. As of the closing date, €276 million (30/9/2015: €1,189 million) of the bilateral credit facilities had been utilised. Of this amount, €132 million (30/9/2015: €932 million) had a remaining term of up to one year.

Unutilised credit facilities of METRO GROUP

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30/9/2015

30/9/2016

 

 

 

 

 

Remaining term

 

Remaining term

€ million

Total

up to 1 year

over 1 year

Total

up to 1 year

over 1 year

Bilateral credit facilities

1,719

962

757

681

437

244

Utilisation

−1,189

−932

−257

−276

−132

−144

Unutilised bilateral credit facilities

530

30

500

405

305

100

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

4,244

962

3,282

3,206

437

2,769

Total utilisation

−1,189

−932

−257

−276

−132

−144

Total undrawn credit facilities

3,055

30

3,025

2,930

305

2,625

Default by 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 creditor default risk.

METRO GROUP principally does not provide collateral for financial liabilities. One exception concerns the first-time consolidation of METRO PROPERTIES GmbH & Co. KG as well as its subsidiaries in 2003. As of 30 September 2016, collateral securities in the amount of €35 million (30/9/2015: €118 million) was provided for financial liabilities.

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

Bonds

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30/9/2015

30/9/2016

 

 

 

 

 

 

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

1,051

1,051

1,104

1,105

672

672

722

730

 

1 to 5 years

1,975

1,975

1,970

2,093

1,175

1,175

1,172

1,248

 

over 5 years

1,276

1,276

1,268

1,235

1,276

1,276

1,269

1,319

CHF

up to 1 year

225

206

208

210

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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30/9/2015

30/9/2016

 

 

 

 

 

 

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

714

714

718

726

8

8

10

14

 

1 to 5 years

124

124

124

127

57

57

57

56

 

over 5 years

83

83

83

82

17

17

17

17

INR

up to 1 year

4,082

56

56

56

1,510

20

20

20

 

1 to 5 years

761

10

10

11

2,456

33

33

35

 

over 5 years

0

0

0

0

0

0

0

0

JPY

up to 1 year

1,970

15

15

15

1,370

12

12

12

 

1 to 5 years

5,335

40

40

43

4,165

37

37

39

 

over 5 years

0

0

0

0

0

0

0

0

Promissory note loans

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30/9/2015

30/9/2016

 

 

 

 

 

 

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

291

291

295

296

0

0

2

2

 

1 to 5 years

67

67

66

70

12

12

12

12

 

over 5 years

54

54

54

62

54

54

54

63

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 tables show the interest rate structure of the financial liabilities:

Bonds

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30/9/2015

30/9/2016

 

 

 

 

 

Interest terms

Currency

Remaining term

Nominal value in € million

Nominal value in € million

Fixed interest

EUR

up to 1 year

110

622

 

1 to 5 years

1,925

1,175

 

over 5 years

1,276

1,276

CHF

up to 1 year

206

0

 

1 to 5 years

0

0

 

over 5 years

0

0

Variable interest

EUR

up to 1 year

941

50

 

1 to 5 years

50

0

 

over 5 years

0

0

Liabilities to banks

(excl. current account)

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30/9/2015

30/9/2016

 

 

 

 

 

Interest terms

Currency

Remaining term

Nominal value in € million

Nominal value in € million

Fixed interest

EUR

up to 1 year

714

8

 

1 to 5 years

124

57

 

over 5 years

83

17

INR

up to 1 year

56

20

 

1 to 5 years

10

33

 

over 5 years

0

0

Variable interest

JPY

up to 1 year

15

12

 

1 to 5 years

40

37

 

over 5 years

0

0

Promissory note loans

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30/9/2015

30/9/2016

 

 

 

 

 

Interest terms

Currency

Remaining term

Nominal value in € million

Nominal value in € million

Fixed interest

EUR

up to 1 year

222

0

 

1 to 5 years

41

9

 

over 5 years

54

54

Variable interest

EUR

up to 1 year

70

0

 

1 to 5 years

26

3

 

over 5 years

0

0

The fixed interest rate for short-term and medium-term financial liabilities and the repricing dates of all fixed-interest financial liabilities 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 financial liabilities 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.