Note G: Net debt

Long-term borrowings

For the fair value of the bonds issued, refer to Note 27 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 2020, the fair value of the bonds included in long-term borrowings was €2,710 million (2019: €1,873 million).

We have a multi-currency revolving credit facility, which was amended in 2020 from €1.8 billion to €1.3 billion and extended to 2025. 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 2020 and 2019, this facility has not been drawn.

In April 2020, a bond was issued with a nominal value of €750 million maturing in 2030 at a coupon rate of 1.625%.

At year-end 2020 and 2019, none of the borrowings was secured by collateral.

In 2021, an amount of €227 million of debt from subsidiaries will mature and €51 million of debt from subsidiaries will mature between 2022 and 2025. The remainder of the loans from subsidiaries has no fixed repayment schedule.

Short-term borrowings

We have US dollar and euro commercial paper programs in place, which can be used to the extent that the equivalent portion of the €1.3 billion multi-currency revolving credit facility is not used. We had no commercial paper outstanding at year-end 2020 and 2019.

Short-term investments

Short-term investments of €245 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.