Interest-bearing debt

Customize annual report

Interest-bearing debt was:

At 31 December 2013

At 31 December 2012

Private loans

1,806

1,792

"Green" loans and subordinated loans

105

8

Total

1,911

1,800

See Note 32 for details of the repayment periods.

At 31 December 2013

At 31 December 2012

Classification

Current

175

74

Non-current

1,736

1,726

Total

1,911

1,800

No collateral has been issued for the interest-bearing debt.

The private loans are predominantly loans from institutional investors and banks and included € 214 million in US dollars (2012: € 224 million), € 138 million in Japanese yen (2012: € 176 million) and € 90 million in pounds sterling (2012: € 92 million). The "green" loans were borrowed to finance specific sustainable energy infrastructure investments. Investors enjoy tax advantages on green funds and so the interest charges are below the market interest rate. Loans consisted of private loans and issued commercial paper.

The credit facilities are explained in Note 32.

Repayment obligations for the first year after the reporting date are recognised under current liabilities.

Borrowings of € 1,752 million (2012: € 1,552 million) are fixed rate (fair value risk). Variable interest rates that track market rates apply to the other borrowings (cash flow/interest rate risk). Derivative financial instruments (interest rate swap contracts) have been used for certain variable interest rates.

The table below shows the average interest rate (excluding capitalised interest) and the fair value of the loans:

2013

2012

Average interest rate

5.7%

5.7%

Fair value of loans

2,092

2,073

The fair value of the loans is estimated using the present value method (‘income approach’) based on relevant market interest rates for comparable debt. Consequently, the information for establishing value is covered by ‘level 2’ in the fair value hierarchy