28 Borrowings

The carrying amounts and fair values of borrowings are as follows:

 

 

 

 

 

 

 

 

 

 

Cash flows

Non-cash changes

 

€ million

2017

From financing activities

Increase/ decrease in cash

Transfer non-current to current

Foreign exchange movement

Other

2018

Non-current

 

 

 

 

 

 

 

Bank borrowings

300

-150

0

-17

2

0

135

Other long-term loans

0

0

0

0

0

0

0

Leases

3

0

0

-1

0

61

63

Total non-current borrowings

303

-150

0

-18

2

61

198

Current

 

 

 

 

 

 

 

Bank overdrafts

26

0

-2

0

1

0

25

Current portion of bank borrowings

11

-19

0

17

1

1

11

Debentures and other short-term loans

0

0

0

0

0

0

0

Leases

2

-33

0

1

0

68

38

Total current borrowings

39

-52

-2

18

2

69

74

Total borrowings

342

-202

-2

0

4

130

272

 

 

 

 

 

 

 

 

On 31 December 2018 the Groups weighted average interest rate was 3.32% (2017: 3.03%) prior to hedging. The floating interest rate payments are subject to designated cash flow hedges and fixed interest rate payments are subject to designated fair value hedges, thereby fixing the weighted average interest rate for the Group at 2.31% (2017: 2.19%) post hedging. The fees paid for the arrangement of the bonds (Note 29), and the amended facilities agreement are amortized over the life of the instruments.

Where applicable under hedge accounting, the fair value of the non-current borrowings is determined based on the present value of the payments associated with the debt instruments, using the applicable yield curve and UCB credit spread for the various different currencies.

Since the bank borrowings are at a floating interest rate that is reset every six months, the carrying amount of the bank borrowings equates to its fair value.

With respect to the current borrowings, the carrying amounts approximate their fair values as the effect of discounting is considered to be insignificant.

On 9 January 2018 the Group amended and extended its € 1 billion revolving credit facility then maturing on 9 January 2021 into a € 1billion revolving credit facility with maturity in 2023 (including the option to request further extensions of the maturity date by two additional years). In December 2018, the Group extended the maturity of its credit facility to 9 January 2024 (option to request further extension of the maturity date with one additional year to 2025 remaining). Per 31 December 2018 there were no outstanding amounts under the revolving credit facility (2017: € 0 million).

The Group has access to certain committed and non-committed bilateral credit facilities. In this respect, per end of 2018 an aggregated amount of € 64 million was undrawn on the committed bilateral facility (2017: € 72 million).

Please refer to Note 4.3 for the maturity analysis of the Group borrowings (excluding other financial liabilities).

The carrying amounts of the Group borrowings are denominated in the following currencies:

 

 

 

€ million

2018

2017

EUR

94

244

USD

52

67

Other

0

0

Total interest-bearing loans by currency

146

311

EUR

28

5

GBP

25

0

USD

15

0

Other

33

0

Total lease liabilities by currency

101

5

Bank overdrafts – USD

23

22

Bank overdrafts – other

2

4

Total borrowings

272

342