Change
Tools: Print  PDF Download Key Figures Comparison

Note 5 Financing income and expenses


 

 

Download XLS

 

 

 

In € millions

 

 

 

2008

2007

 

 

 

Interest income:

 

 

- Interest rate derivatives

36

28

- Loans and receivables

113

128

- Other

5

1

 

 

 

Interest expenses:

 

 

- Derivatives

(54)

(26)

- Other financial liabilities

(236)

(193)

- ICI financing fees

(40)

- Other

(37)

(18)

 

 

 

Fair value changes:

 

 

- Interest rate derivatives

49

(18)

- Other financial liabilities

(46)

21

 

 

 

Other

(13)

(3)

 

 

 

Total

(183)

(120)

The interest charges increased due to debt acquired from ICI, for which we paid €36 million interest during 2008. Under the interest expenses from derivatives, a charge of €26 million is included related to foreign currency effects of future interest payments in the UK. These payments are hedged by forward contracts and we do not apply hedge accounting.

Included in the interest expenses was a reduction of €3 million (2007: €1 million) due to the capitalization of financing expenses of capital investment projects under construction. The average interest rate used for capitalization of borrowing cost was 5 percent.

Keyword Search
Copyright © 2009 Akzo Nobel N.V.