APC 2009 Annual Report Download - page 196

2009 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC194
COMPANY FINANCIAL STATEMENTS
6NOTES TO THE FINANCIAL STATEMENTS
Schneider Electric SA has made several bond issues as part of its
Euro Medium Term Notes (EMTN) programme over the past few
years. Issues that were not yet due as of December31, 2009 were
as follows:
•EUR250 million worth of bonds issued in March 2009 to top up
the EUR 780 million twelve-year tranche at 4% issued in August
2005, raising the total issue to EUR1.03 billion;
•EUR150 million worth of bonds issued in May 2009 to top up the
EUR 600 million at 5.375% issued in October 2007, raising the
total issue to EUR750 million;
•EUR750 million worth of 6.75% bonds issued in January 2009
and due July 16, 2013;
•EUR100 million worth of bonds indexed to the Constant Maturity
Swap (CMS 10-Year) rate, issued in July 2008 and due July 31,
2013;
•EUR180million worth of bonds issued in April 2008 to top up the
EUR600million twelve-year tranche at 4% issued in August 2005,
raising the total issue to EUR780million;
•EUR600 million worth of 5.375% bonds issued in October 2007
and due January 8, 2015;
•EUR1 billion worth of bonds issued in July 2006, comprising a
EUR500million 5-year variable rate tranche and a EUR500million
7 1/2-year 4.5% tranche;
•EUR1.5 billion worth of bonds issued in August 2005, comprising
a EUR900 million 5-year tranche at 3.125% and a EUR600 million
12-year tranche at 4%.
These bonds are traded on the Luxembourg stock exchange. The
issue premium and issue costs are amortised according to the
effective interest method.
In addition, on July25, 2008, Schneider Electric SA issued
EUR 178million worth of bonds at the 3-month Euribor due
July25,2016. The issue proceeds are equal to the discounted value
of a requested refund of the précompte equalization tax. The bonds
are repayable upon receipt of the refund.
Lastly, the Group redeemed EUR 110million worth of January2007
bonds at maturity on January26, 2009.
Note10 Other borrowings
Other borrowings at December31, 2009 included accrued interest
on bonds issued by the Company. Accrued interest rose to
EUR 117million from EUR 92million at end-2008 following the issue
of EUR 1,150million worth of bonds in 2009.
Lastly, this item includes two bank loans:
•a EUR 397million “Schuldschein” loan granted from international
banks in fi rst-half 2008, comprising a EUR 129million 7-year
variable-rate tranche, a EUR 55million 7-year fi xed-rate tranche,
a EUR 195million 5-year variable rate tranche and a EUR 18million
5-year fi xed rate tranche;
•a EUR 75million variable rate loan granted on October10,
2008, due October11, 2011. The Company repaid this loan on
September15, 2009.
Note11 Interest-bearing liabilities
Interest-bearing liabilities Dec. 31, 2008 Increase Decrease Dec. 31, 2009
Commercial paper 189,500 0 (143,500) 46,000
Overdrafts 50 601 - 651
Other 339 - (312) 27
NET 189,889 601 (143,812) 46,678
Note12 Deferred income
This item primarily comprises accrued interest on commercial paper and re-invoiced insurance costs in a non-material amount.