Note G: Net debt
In € millions |
2017 |
2018 |
Bonds issued |
1,492 |
1,739 |
Debt from subsidiaries |
2,897 |
4,732 |
Long-term borrowings |
4,389 |
6,471 |
Current portion of debenture loans |
799 |
500 |
Short-term loans |
130 |
26 |
Short-term borrowings |
929 |
526 |
Total borrowings |
5,318 |
6,997 |
Short-term investments |
– |
(5,460) |
Cash and cash equivalents |
(111) |
(1,996) |
Net debt |
5,207 |
(459) |
Long-term borrowings
For the fair value of the bonds issued, refer to Note 25 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. The fair value of the bonds included in long-term and short-term borrowings was €2.320 million.
For information on valuation methods, see Note 25 of the Consolidated financial statements.
In December 2018, Akzo Nobel Sweden Finance AB publ. was substituted by Akzo Nobel N.V. as issuer under the €750 million 2 5/8% 2012/22 bond.
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 2018 and 2017, this facility has not been drawn.
At year-end 2018 and 2017, none of the borrowings was secured by collateral.
Short-term borrowings
In December 2018 a bond of €800 million matured. In November 2019, a bond of €500 million will mature. This bond is classified as a short-term borrowing.
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 2018 (2017: €112 million).
In € millions |
2017 |
2018 |
1 3/4% 2014/24 (€500 million) |
497 |
498 |
1 1/8% 2016/26 (€500 million) |
494 |
495 |
3-months EURIBOR+0.2% 2017/19 (€500 million) |
501 |
– |
2 5/8% 2012/22 (€750 million) |
– |
746 |
Total |
1,492 |
1,739 |
Cash and cash equivalents
Deposits and money market funds within cash and cash equivalents almost entirely consist of time deposits immediately convertible into 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.
In € millions |
2017 |
2018 |
Cash on hand and in banks |
111 |
296 |
Short-term investments with life up to 3 months |
– |
1,700 |
Included under cash and cash equivalents in the balance sheet |
111 |
1,996 |
Short-term investments
Short-term investments of €5,460 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.