Annual Report 2017

26. Borrowings

in thousands of EUR

31 December 2017

31 December 2016

Non-current

Bank and other borrowings

376,616

387,187

Financial leases

584

1,066

377,200

388,253

Current

Bank overdrafts

152,443

143,396

Commercial paper

398,800

342,000

Bank and other borrowings

61,225

56,876

Financial leases

477

918

612,945

543,190

Total borrowings

990,145

931,443

Bank facilities

The Group has a revolving credit facility of €1,200 million. In July 2016 the facility was extended for a second time and now has a final maturity date of 17 September 2021. The interest rate on the drawings consists of the margin and the applicable rate (i.e. for a loan in euros, the EURIBOR), however the applicable rate can never be below zero percent. In addition to the revolving credit facility the Group has uncommitted bilateral overdraft and money market facilities for a total of €284 million.

At the end of 2017 the Group also has multiple bank guarantee facilities for a total amount of €68 million (2016: €59 million).

Commercial paper

In 2016 GrandVision commenced with a commercial paper program under which it can issue commercial paper up to the value of €500 million (2016: €400 million). As of 31 December 2017 the amounts outstanding under the commercial paper program totalled €398.8 million (2016: €342 million) and have maturity dates of less than 12 months.

Movements in liabilities from financing activities are as follows:

in thousands of EUR

Bank borrowings

Financial leases

Commercial paper

Other borrowings

Interest derivatives

Total

At 1 January 2017

442,776

1,984

342,000

1,287

4,243

792,290

Changes from financing cash flows

Proceeds from borrowings

321,682

172

56,800

2,693

-

381,347

Repayments of borrowings

- 329,137

- 884

-

- 285

-

- 330,306

Interest swap payments

-

-

-

-

- 2,056

- 2,056

Interest

- 2,829

- 63

496

-

-

- 2,396

Other movements

Acquisitions

12,974

-

-

321

-

13,295

Amortization/interest accrual

3,608

63

- 496

239

2,067

5,481

Exchange differences

- 15,150

- 211

- 337

-

- 15,698

Other comprehensive income (before tax)

-

-

-

-

- 1,034

- 1,034

At December 2017

433,923

1,061

398,800

3,918

3,220

840,922

Non-current

373,678

584

-

2,938

3,135

380,335

Current

60,245

477

398,800

980

85

460,587

At December 2017

433,923

1,061

398,800

3,918

3,220

840,922

The interest on commercial paper relates to the effect of negative effective interest rates. Interest paid in the consolidated Cash Flow Statement also includes commitment and utilization fees related to bank borrowings.

The maturity of the borrowings of the Group is as follows:

in thousands of EUR

Within 1 year

1-2 years

2-5 years

After 5 years

Total

At 31 December 2017

Borrowings

213,668

216

376,400

-

590,284

Commercial paper

398,800

-

-

-

398,800

Financial leases

477

322

262

-

1,061

612,945

538

376,662

-

990,145

At 31 December 2016

Borrowings

200,272

-

387,187

-

587,459

Commercial paper

342,000

-

-

-

342,000

Financial leases

918

505

549

12

1,984

543,190

505

387,736

12

931,443

The fair value of the borrowings is approximately equal to the carrying amounts since these loans have a floating interest rate.

The weighted average effective interest rates of the borrowings under the revolving credit facility, the commercial paper program and the bilateral overdraft and money market facilities at balance sheet date were as follows:

2017

2016

Borrowings and commercial paper

0.28%

0.92%

Interest rates on variable-rate borrowings are mainly EURIBOR-based, increased by a certain margin. The margin is determined based on the interest cover and the leverage ratio (note 3.1.3).

The Group has the following undrawn borrowing facilities:

in thousands of EUR

31 December 2017

31 December 2016

- Expiring within one year

265,558

172,193

- Expiring beyond one year

824,965

810,964

1,090,523

983,157

Financial lease commitments

The financial lease commitments fall due as follows:

31 December 2017

31 December 2016

in thousands of EUR

Payment

Interest

Principal

Payment

Interest

Principal

Within 1 year

508

31

477

980

62

918

1 - 2 years

340

18

322

524

19

505

2 - 5 years

280

18

262

553

4

549

After 5 years

-

-

-

12

-

12

Total

1,128

67

1,061

2,069

85

1,984