28 Borrowings

28 Borrowings

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

 

 

 

 

 

 

 

 

 

 

Cash flows

Non-cash changes

 

€ million

2018

From financing activities

increase/
decrease in cash

Transfer non-current to current

Foreign exchange movement

Other

2019

Non-current

 

 

 

 

 

 

 

Bank borrowings

135

−100

0

−18

1

0

18

Other long-term loans

0

0

0

0

0

0

0

Leases

63

−34

0

−1

1

32

61

Total non-current borrowings

198

−134

0

−19

2

32

79

Current

 

 

 

 

 

 

 

Bank overdrafts

25

0

−20

0

0

0

5

Current portion of bank borrowings

11

−18

0

18

1

1

13

Debentures and other short-term loans

0

0

0

0

0

0

0

Leases

38

−14

0

1

1

12

38

Total current borrowings

74

−32

−20

19

2

13

56

Total borrowings

272

−166

−20

0

4

45

135

 

 

 

 

 

 

 

 

On 31 December 2019 the Groups weighted average interest rate was 3.49% (2018: 3.32%) 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 2.33% (2018: 2.31%) 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 € 1 billion revolving credit facility with maturity in 2023 (including the option to request further extensions of the maturity date by two additional years). In December 2019, the Group extended the maturity of its credit facility to 9 January 2025 (no further extension option is available). Per 31 December 2019 there were no outstanding amounts under the revolving credit facility (2018: € 0 million).

On 10 October 2019, the Group entered into a USD 2.1 billion bullet term loan facility agreement, maturing in 2025, to finance the Ra Pharma acquisition. Per 31 December 2019 there were no amounts outstanding under this term facility.

The Group has access to certain committed and non-committed bilateral credit facilities. In this respect, per end of 2019 an aggregated amount of € 55 million was undrawn on the committed bilateral facility (2018: € 64 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

2019

2018

USD

57

90

EUR

36

124

GBP

19

25

CNY

5

7

JPY

4

7

Other

14

19

Total borrowings

135

272