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3. Notes

29. Borrowings

29. Borrowings

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

 

2019

Cash Flows

Non-cash changes

2020

 

From Financing activities

Increase/ Decrease in cash

Transfer Non-Current to Current

Foreign Exchange Movement

Other

€ million

Non-current

Bank borrowings

18

1 733

0

0

-197

0

1 554

Other long-term loans

0

0

0

0

0

0

0

Leases

61

- 31

0

0

- 4

49

75

Total non-current borrowings

79

1 702

0

0

-201

49

1 629

Current

Bank overdrafts

5

0

30

0

- 2

0

33

Current portion of bank borrowings

13

-4

0

0

-1

5

13

Debentures and other short-term loans

0

0

0

0

0

0

0

Leases

38

- 10

0

0

- 2

9

35

Total current borrowings

56

- 14

30

0

- 5

14

81

Total borrowings

135

1 688

30

0

-206

63

1 710

On December 31, 2020 the Groups weighted average interest rate was 1.84% (2019: 3.49%) 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 1.54% (2019: 2.33%) post hedging. The fees paid for the arrangement of the bonds (refer to Note 30 ), 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 January 9, 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 January 9, 2025 (no further extension option is available). Per 31 December, 2020 there were no outstanding amounts under the revolving credit facility (2019: € 0 million).

On October 10, 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 December 31, 2020 there was USD 1.9 billion outstanding under this term loan facility (2019: € 0 million).

The Group has access to certain committed and non- committed bilateral credit facilities. In this respect, per end of 2020 an aggregated amount of € 47 million was undrawn on the committed bilateral facility (2019: € 55 million).

Please refer to Note 5.3 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

2020

2019

USD

1 634

57

EUR

39

36

GBP

13

19

CNY

7

5

JPY

3

4

Other

14

14

Total borrowings

1 710

135