Borrowings
|
2018
|
2017
|
|||
|
Total
|
Of which
current |
Total
|
Of which
current |
|
|
Debenture loans
|
2,543
|
300
|
2,542
|
-
|
|
Private loans
|
16
|
7
|
13
|
8
|
|
Finance lease liabilities
|
21
|
1
|
4
|
-
|
|
Credit institutions
|
72
|
72
|
69
|
69
|
|
Total
|
2,652
|
380
|
2,628
|
77
|
In agreements governing loans with a residual amount at year-end 2018 of €2,543 million, of which €300 million was of a short-term nature (31 December 2017: €2,542 million, of which €0 million was of a short-term nature), negative pledge clauses have been included that restrict the provision of security.
The documentation of 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 July 2018, Moody's left the stable outlook for their A3 credit rating for DSM unchanged. Standard & Poor's confirmed DSM's credit rating in March 2018 to be A with a stable outlook. At 31 December 2018, there was €1,756 million in borrowings outstanding with a remaining term of more than 5 years (at 31 December 2017, there was €1,746 million with a remaining term of more than 5 years).
The schedule of repayment of borrowings is as follows:
Borrowings by maturity
|
2018
|
2017
|
|
|
2018
|
-
|
77
|
|
2019
|
380
|
301
|
|
2020
|
10
|
-
|
|
2021
|
1
|
-
|
|
2022 and 2023
|
505
|
504
|
|
After 2023
|
1,756
|
1,746
|
|
Total
|
2,652
|
2,628
|
A breakdown of the borrowings by currency is given in the following table:
Borrowings by currency
|
2018
|
2017
|
|
|
EUR
|
2,566
|
2,543
|
|
USD
|
25
|
20
|
|
CNY
|
21
|
16
|
|
TWD
|
17
|
-
|
|
BRL
|
19
|
45
|
|
Other
|
4
|
4
|
|
Total
|
2,652
|
2,628
|
On balance, total borrowings increased by €24 million due to the following changes:
Movements of borrowings
|
2018
|
2017
|
|
|
Balance at 1 January
|
2,628
|
3,405
|
|---|---|---|
|
Loans taken up
|
25
|
16
|
|
Repayments
|
(13)
|
(818)
|
|
Acquisitions/consolidation changes
|
10
|
24
|
|
Changes in debt to credit institutions
|
3
|
2
|
|
Exchange differences
|
(1)
|
(1)
|
|
Balance at 31 December
|
2,652
|
2,628
|
The average effective interest rate on the portfolio of borrowings outstanding in 2018, including hedge instruments related to these borrowings, amounted to 2.24% (2017: 3.28%).
A breakdown of debenture loans is given below:
Debenture loans
|
Nom. amt.
|
2018
|
2017
|
|||
|
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
|
498
|
497
|
|
EUR loan
|
1.38%
|
2015—2022
|
500
|
499
|
499
|
|
EUR loan
|
0.75%
|
2016—2026
|
750
|
748
|
748
|
|
Total
|
2,550
|
2,543
|
2,542
|
||
All debenture loans have a fixed interest rate and are listed on the AEX.
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 of 3.97%, including the settlement of the pre-hedge.
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 the settlement of the pre-hedge.
The 1.375% EUR bond 2015–2022 of € 500 million has an effective interest rate of 1.40%.
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 of 1.08%, including the settlement of the pre-hedge.
A breakdown of private loans is given below:
Private loans
|
2018
|
2017
|
|||
|
CNY loan
|
15
|
12
|
||
|
Other loans
|
1
|
1
|
||
|
Total
|
16
|
13
|
||
DSM's policy regarding financial-risk management is described in Note 23.