Borrowings

 
2017
2016
 
Total
Of which
current
Total
Of which
current
     
Debenture loans
2,542
-
3,290
749
Private loans
13
8
44
37
Finance lease liabilities
4
-
4
-
Credit institutions
69
69
67
67
     
Total
2,628
77
3,405
853

In agreements governing loans with a residual amount at year-end 2017 of €2,542 million, of which €0 million was of a short-term nature (31 December 2016: €3,290 million, of which €749 million was of a short-term nature), negative pledge clauses have been included that restrict the provision of security.

The documentation of the €750 million bond issued in October 2007, the €300 million bond issued in November 2013, the €500 million bond issued in March 2014, the €500 million bond issued in April 2015, the €500 million bond issued in September 2015 and the €750 million bond issued in September 2016 include a change-of-control clause. This clause allows the bond investors to request repayment at par if 50% or more of the DSM shares are controlled by a third party and if the company is downgraded below investment grade (< BBB-). In May 2017, Moody's changed the outlook from negative to stable in relation to their A3 credit rating. Standard & Poor's confirmed DSM's credit rating in June 2017. At 31 December 2017, there was €1,746 million in borrowings outstanding with a remaining term of more than five years (at 31 December 2016, there was €2,245 million with a remaining term of more than five years).

The schedule of repayment of borrowings is as follows:

Borrowings by maturity

 
2017
2016
   
2017
-
853
2018
77
6
2019
301
300
2020
-
1
2021 and 2022
504
-
After 2022
1,746
2,245
   
Total
2,628
3,405

A breakdown of the borrowings by currency is given in the following table:

Borrowings by currency

 
2017
2016
   
EUR
2,543
3,291
USD
20
38
CNY
16
5
TWD
-
50
BRL
45
10
Other
4
11
   
Total
2,628
3,405

On balance, total borrowings decreased by €777 million owing to the following changes:

Movements of borrowings

 
2017
2016
   
Balance at 1 January
3,405
2,810
   
Loans taken up
16
754
Repayments
(818)
(4)
Acquisitions
24
8
Changes in debt to credit institutions
2
(11)
Repayment of commercial paper
-
(150)
Exchange differences
(1)
(2)
   
Balance at 31 December
2,628
3,405

The average effective interest rate on the portfolio of borrowings outstanding in 2017, including hedge instruments related to these borrowings, amounted to 3.28% (2016: 3.40%).

A breakdown of debenture loans is given below:

Debenture loans

 
Nom. amt.
2017
2016
      
EUR loan
5.25%
2007-2017
750
-
749
EUR loan
1.75%
2013-2019
300
300
300
EUR loan
2.38%
2014-2024
500
498
498
EUR loan
1.00%
2015-2025
500
497
497
EUR loan
1.38%
2015-2022
500
499
499
EUR loan
0.75%
2016-2026
750
748
747
      
Total
  
3,300
2,542
3,290

All debenture loans have a fixed interest rate.

The 1.75% EUR bond 2013-2019 of €300 million has an effective interest rate of 1.76%. The 2.375% EUR bond 2014-2024 of €500 million was pre-hedged by means of forward starting swaps, resulting in an effective interest rate for this bond at 3.97% including settlement of pre-hedge.

The 1.375% EUR bond 2015-2022 of €500 million has an effective interest rate of 1.40%.

The 1% EUR bond 2015-2025 of €500 million was pre-hedged by means of forward starting swaps, resulting in an effective interest rate for this bond at 3.65% including settlement of pre-hedge.

The 0.75% EUR bond 2016-2026 of €750 million was pre-hedged by means of a collar resulting in an effective interest rate for this bond amounts at 1.08% including settlement of pre-hedge.

A breakdown of private loans is given below:

Private loans

 
2017
2016
     
TWD loan
floating
(1 month)
2013-2018
-
34
CNY loan
fixed
2018-2019
12
 
Other loans
1
10
     
Total
  
13
44

DSM's policy regarding financial-risk management is described in Note 23.