Note G: Net debt

Multi-currency revolving credit facility

We have a multi-currency revolving credit facility of €1.3 billion which runs until 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 2022 and 2021, this facility has not been drawn.

Long-term borrowings

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 2022, the fair value of the bonds included in long-term borrowings was €2,633 million (2021: €2,624 million).

In March 2022, two bonds were issued with nominal values of €600 million each, of which one at a coupon rate of 1.5%, maturing in 2028 and one at a coupon rate of 2.0%, maturing in 2032.

At year-end 2022 and 2021, none of the borrowings was secured by collateral.

In 2023, an amount of €125 million of debt from subsidiaries will mature; a further amount of €100 million will mature between 2024 and 2027. The remainder of the loans from subsidiaries has no fixed repayment schedule.

Short-term borrowings

For the fair value of the debt to credit institutions, refer to Note 27 of the Consolidated financial statements.

The current portion of long-term borrowings decreased mainly due to the maturing of a €750 million bond in July 2022.

Debt to credit institutions includes our commercial paper program. 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 €1.3 billion commercial paper outstanding at year-end 2022 (2021: €371 million) against an average interest rate of 1.6% (2021: 0.5% negative). At year-end 2022, we had short-term bank loans outstanding of €1.1 billion (2021: €300 million) against a 3-months Euribor plus a mark-up (2021: interest rate of 0.6% negative). None of these facilities contain financial covenants.

Short-term investments

Short-term investments almost entirely consist of time deposits, money market funds and marketable securities with a lifetime at investment date longer than three months but shorter than twelve months. At year-end 2022, we had short-term investments outstanding for an amount of €290 million (2021: €nil).

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.