Note G: Net debt

Analysis of net debt by category

In € millions

2018

2019

Bonds issued

1,739

1,741

Debt from subsidiaries

4,732

3,941

Long-term borrowings

6,471

5,682

Current portion of long-term borrowings

500

Short-term loans

26

36

Short-term borrowings

526

36

Total borrowings

6,997

5,718

Short-term investments

(5,460)

(120)

Cash and cash equivalents

(1,996)

(458)

Net debt

(459)

5,140

Long-term borrowings

For the fair value of the bonds issued, refer to Note 26 of the Consolidated financial statements. We estimated the fair value of the bonds issued based on the quoted market prices (level 1) for the same or similar issues or on the current rates offered to us for debt with similar maturities. At year-end 2019, the fair value of the bonds included in long-term borrowings was €1,873 million.

We have a €1.8 billion multi-currency revolving credit facility which runs until 2022. This facility does not contain financial covenants or acceleration provisions that are based on adverse changes in ratings or material adverse change. At year-end 2019 and 2018, this facility has not been drawn.

At year-end 2019 and 2018, none of the borrowings was secured by collateral.

Bonds issued

In € millions

2018

2019

2 5/8% 2012/22 (€750 million)

746

747

1 3/4% 2014/24 (€500 million)

498

498

1 1/8% 2016/26 (€500 million)

495

496

Total

1,739

1,741

Short-term borrowings

In November 2019, a bond of €500 million matured. We have US dollar and euro commercial paper programs in place, which can be used to the extent that the equivalent portion of the €1.8 billion multi-currency revolving credit facility is not used. We had no commercial paper outstanding at year-end 2019 and 2018.

Short-term investments

Short-term investments of €120 million almost entirely consist of time deposits, money market funds and marketable securities with a life time at investment date longer than three months but shorter than twelve months.

Cash and cash equivalents

Deposits and money market funds within cash and cash equivalents almost entirely consist of time deposits immediately convertible into known amounts of cash and with a maturity of three months or less from the date of purchase and marketable securities that can be redeemed immediately when called.

Cash and cash equivalents

In € millions

2018

2019

Cash on hand and in banks

296

343

Deposits and money markets funds with a life up to three months

1,700

115

Included under cash and cash equivalents in the balance sheet

1,996

458