Note 16: Net debt

at year-end 2015 of €1,226 million was below 2014 (€1,606 million).

Analysis of net debt by category

 

 

 

 

 

In € millions

 

2014

 

2015

Bonds issued

 

2,351

 

2,034

Other borrowings

 

176

 

127

Long-term borrowings

 

2,527

 

2,161

Current portion of long-term borrowings

 

662

 

378

Debt to credit institutions

 

83

 

48

Other

 

66

 

4

Short-term borrowings

 

811

 

430

Total borrowings

 

3,338

 

2,591

Cash and cash equivalents

 

(1,732)

 

(1,365)

 

1,606

 

1,226

AkzoNobel’s is mainly denominated in euro.

The part of long-term borrowings that is due within one year is presented under short-term borrowings. For details on the exposure to interest rate and foreign currency risk, see Note 22.

Bonds issued

 

 

 

 

 

In € millions

 

2014

 

2015

8% 2009/16 (£250 million)

 

320

 

4% 2011/18 (€800 million)

 

794

 

796

2 5/8% 2012/22 (€750 million)

 

741

 

742

1 3/4% 2014/24 (€500 million)

 

496

 

496

Total

 

2,351

 

2,034

The average effective interest rate of the bonds outstanding at year-end 2015 was 2.9 percent (year-end 2014: 3.6 percent).

Aggregated maturities of long-term borrowings

 

 

 

 

 

In € millions

 

2017 – 2019

 

After 2020

Bonds issued

 

796

 

1,238

Other borrowings

 

67

 

60

Total

 

863

 

1,298

Long-term borrowings

We have a €1.8 billion multi-currency revolving credit facility, which was amended and extended in 2015 by two additional years to 2020. This facility does not contain financial covenants or acceleration provisions that are based on adverse changes in ratings or on material adverse change. At year-end 2015 and 2014, this facility had not been drawn. At year-end 2015 and 2014, none of the borrowings was secured by collateral.

Financial lease liabilities are included in Other borrowings and aggregated €46 million (2014: €49 million). An amount of €5 million (2014: €6 million) will mature within one year, €18 million will mature in the period 2017 through 2020 and €23 million after 2020.

Short-term borrowings

In March 2015, a bond of €621 million matured. In April 2016, a bond totaling £250 million will mature; at year-end 2015 this bond was classified as a short-term borrowing.

We have US dollar and euro commercial paper programs in place, which can be used to the extent that the equivalent portion of the €1.8 billion multi-currency revolving credit facility is not used. We had no commercial paper outstanding at year-end 2015 and 2014.

Cash and cash equivalents

Short-term investments almost entirely consist of cash loans, time deposits, marketable private borrowings and marketable securities immediately convertible into cash. For more information on credit risk management, see Note 22.

At December 31, 2015, an amount of €68 million in cash and cash equivalents was restricted (2014: €95 million). Restricted cash is defined as cash that cannot be accessed centrally due to regulatory or contractual restrictions.

In € millions

 

2014

 

2015

Cash on hand and in banks

 

848

 

771

Short-term investments

 

884

 

594

Included under cash and cash equivalents in the balance sheet

 

1,732

 

1,365

Debt to credit institutions

 

(83)

 

(48)

Total per cash flow statement

 

1,649

 

1,317

Net debt

 

 

 

 

 

In € millions

Long-term

Short-term

Cash

Net debt

Net debt at January 1, 2014

2,666

961

(2,098)

1,529

Net cash from operating activities

(811)

(811)

Net cash from investing activities

529

529

Proceeds from borrowings

512

474

(986)

Borrowings repaid

(1,347)

1,347

Transfers from long-term to short-term

(663)

663

Issue of shares for stock option plan

(12)

(12)

Dividends

280

280

Changes in exchange rates

23

(70)

(47)

Other changes

(11)

72

77

138

Net debt at year-end 2014

2,527

811

(1,732)

1,606

Net cash from operating activities

(1,136)

(1,136)

Net cash from investing activities

508

508

Proceeds from borrowings

829

(829)

Borrowings repaid

(1,518)

1,518

Transfers from long-term to short-term

(386)

386

Dividends

281

281

Buy-out of non-controlling interests

2

2

Changes in exchange rates

6

(2)

(18)

(14)

Other changes

14

(76)

41

(21)

at year-end 2015

2,161

430

(1,365)

1,226

Net debt

Defined as long-term borrowings plus short-term borrowings less cash and cash equivalents.

Net debt

Defined as long-term borrowings plus short-term borrowings less cash and cash equivalents.

Net debt

Defined as long-term borrowings plus short-term borrowings less cash and cash equivalents.

Net debt

Defined as long-term borrowings plus short-term borrowings less cash and cash equivalents.