Note G: Net debt

Long-term borrowings

The part of long-term borrowings that is due within one year is presented under short-term borrowings. Short-term borrowings include the €750 million bond maturing in 2022.

For the fair value of the bonds issued, refer to Note 27 of the Consolidated financial statements. We estimated the fair value of the bonds issued based on the quoted market prices (level 1) for the same or similar issues or on the current rates offered to us for debt with similar maturities. At year-end 2021, the fair value of the bonds included in long-term and short-term borrowings was €2,624 million (2020: €2,710 million).

We have a multi-currency revolving credit facility of €1.3 billion which was extended in 2021 to 2026. This facility does not contain financial covenants or acceleration provisions that are based on adverse changes in ratings or material adverse change. At year-end 2021 and 2020, this facility has not been drawn.

At year-end 2021 and 2020, none of the borrowings was secured by collateral.

In 2022, an amount of €216 million of debt from subsidiaries will mature and and amount of €1 million of debt from subsidiaries will mature after 2026. The remainder of the loans to subsidiaries has no fixed repayment schedule.

Short-term borrowings

In July 2022, a bond of €750 million will mature. This bond is 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 €1.3 billion multi-currency revolving credit facility is not used. We had €371 million commercial paper outstanding at year-end 2021 (2020: €nil) against an average negative interest rate of 0.5%. At year-end 2021, we had a €300 million short-term bank loan outstanding (2020: €nil) against a negative interest rate of 0.6%. Neither of these facilities contains financial convenants.

Short-term investments

Short-term investments almost entirely consist of time deposits, money market funds and marketable securities with a life time at investment date longer than three months but shorter than twelve months. At year-end 2021, we had no short-term investments outstanding (2020: €245 million).

Cash and cash equivalents

Deposits and money market funds within cash and cash equivalents almost entirely consist of time deposits immediately convertible into known amounts of cash and with a maturity of three months or less from the date of purchase and marketable securities that can be redeemed immediately when called.