C19 Interest-bearing liabilities
As of December 31, 2017, the Company’s outstanding interest-bearing liabilities was SEK 33.0 (26.7) billion.
Interest-bearing liabilities
| 2017 | 2016 | |||||||
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Borrowings, current |
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Current part of non-current borrowings1) |
89 | 4,954 | ||||||
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Other borrowings, current |
2,456 | 3,079 | ||||||
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Total borrowings, current |
2,545 | 8,033 | ||||||
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Borrowings, non-current |
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Notes and bond loans |
20,560 | 10,556 | ||||||
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Other borrowings, non-current |
9,940 | 8,097 | ||||||
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Total borrowings, non-current |
30,500 | 18,653 | ||||||
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Total interest-bearing liabilities |
33,045 | 26,686 | ||||||
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| 1) | Including notes and bond loans of SEK 0 (4,900) million. |
To secure long-term funding, the Company uses notes and bond programs together with bilateral research and development loans. All outstanding notes and bond loans are issued by the Parent Company under its Euro Medium Term Note (EMTN) program or under its U.S. Securities and Exchange Commission (SEC) Registered program. Bonds issued at a fixed interest rate are normally swapped to a floating interest rate using interest rate swaps under the Asset and liability management mandate described in Note C20, “Financial risk management and financial instruments.” Total weighted average interest rate cost for the long-term funding during the year was 1.68% (2.76%). The outstanding EUR bonds and USD bond are revalued based on changes in benchmark interest rates according to the fair value hedge methodology stipulated in IAS 39.
In February 2017, the Company issued a Euro denominated 500 million 4-year bond with a fixed coupon rate of 0.875% and a Euro denominated 500 million 7-year bond with a fixed coupon rate of 1.875% . The proceeds were used to refinance debt maturing in 2017 and for general corporate purposes.
In April 2017, the Company exercised its second extension option under the USD 2 billion multi-currency revolving credit facility, extending the maturity date to June 2022.
In June 2017, the Company repaid the Euro demoninated 500 million bond issued in 2007.
In December, Ericsson raised USD 220 million from the Nordic Investment Bank (NIB) and USD 150 million from AB Svensk Exportkredit. The credit agreements mature in 2023 and 2025 and extended Ericsson’s debt maturity profile. Of these new funds, 98 million replaced credit with NIB that was set to mature in 2019.
Notes, bonds, bilateral loans and committed credit
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Issued-maturing |
amount | Coupon | Currency | (SEK million) | (SEK million) | Maturity date | in book value) | |||||||||||||||||||||
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Notes and bond loans |
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2010–20201) |
170 | USD | 1,394 | 1,488 | December 23, 2020 | |||||||||||||||||||||||
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2012–2022 |
1,000 | 4.125 | % | USD | 8,180 | 2) | 8,223 | May 15, 2022 | 9 | |||||||||||||||||||
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2017–2021 |
500 | 0.875 | % | EUR | 4,897 | 2) | 4,846 | March 1, 2021 | 7 | |||||||||||||||||||
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2017–2024 |
500 | 1.875 | % | EUR | 4,862 | 2) | 4,824 | March 1, 2024 | –7 | |||||||||||||||||||
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2017–20251) |
150 | USD | 1,227 | 1,432 | December 22, 2025 | |||||||||||||||||||||||
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Total notes and bond loans |
20,560 | 20,813 | 9 | |||||||||||||||||||||||||
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Bilateral loans |
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2012–20213) |
98 | USD | 805 | 830 | September 30, 2021 | |||||||||||||||||||||||
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2013–20204) |
684 | USD | 5,609 | 5,724 | November 6, 2020 | |||||||||||||||||||||||
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2013–20233) |
220 | USD | 1,797 | 1,972 | June 15, 2023 | |||||||||||||||||||||||
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Total bilateral loans |
8,211 | 8,526 | ||||||||||||||||||||||||||
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Committed credit |
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Long-term committed credit facility5) |
2,000 | USD | — | — | June 5, 2022 | |||||||||||||||||||||||
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Total committed credit |
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| 1) | Private Placement, Swedish Export Credit Corporation (SEK). |
| 2) | Interest rate swaps are designated as fair value hedges. |
| 3) | Nordic Investment Bank (NIB), R&D project financing. |
| 4) | European Investment Bank (EIB), R&D project financing. |
| 5) | Multi-currency revolving credit facility. Unutilized. |