Siemens 2006 Annual Report Download - page 187

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Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated and per share amounts) 183
20 Debt
As of September 30, 2006, weighted-average interest rates for loans from banks, other
financial indebtedness and obligations under capital leases were 5.0% (2005: 4.5%), 4.4%
(2005: 4.1%) and 6.0% (2005: 6.1%), respectively. In some countries, the Company has pledged
securities and executed promissory notes to secure borrowings in conformity with local prac-
tice.
Commercial paper
The Company has agreements with financial institutions under which it may issue up to €3.0
billion of commercial paper and U.S.$ 5.0 billion (approximately €3.9 billion) of commercial
paper. As of September 30, 2006 and 2005, outstanding commercial paper totaled €– and
€1,484 (interest rates from 3.00% to 3.87%), respectively.
Credit facilities
The credit facilities at September 30, 2006 consisted of approximately € 7.6 billion in unused
committed lines of credit. These include a U.S.$5.0 billion syndicated multi-currency
revolving credit facility expiring March 2012 provided by a syndicate of international banks
and a revolving credit facility for an aggregate amount of €450 expiring in September 2012
provided by a domestic bank. In addition, in August 2006 the Company established a U.S.$4.0
billion syndicated multi-currency term loan and revolving credit facility expiring August 2013
provided by a syndicate of international banks. The facility comprises a U.S.$1.0 billion term
loan and a U.S.$3.0 billion revolving tranche. Borrowings under these credit facilities bear
interest of 0.15% above either EURIBOR (Euro Interbank Offered Rate) in case of a drawdown in
euros, or LIBOR (London Interbank Offered Rate) in case of a drawdown in one of the other
currencies agreed on. As of September 30, 2006 and 2005, the full amounts of these lines of
credit remained unused. Commitment fees for the years ended September 30, 2006 and 2005
totaled approximately €2 and €3, respectively. The facilities are for general business purposes.
Notes to Consolidated Financial Statements
September 30,
2006 2005
Short-term
Notes and bonds 1,149 1,625
Loans from banks 659 673
Other financial indebtedness 314 1,612
Obligations under capital leases 53 89
Short-term debt and current maturities of long-term debt 2,175 3,999
Long-term
Notes and bonds (maturing 2007–2066) 12,285 6,826
Loans from banks (maturing 2007–2016) 342 613
Other financial indebtedness (maturing 2007–2018) 508 733
Obligations under capital leases 264 264
Long-term debt 13,399 8,436
15,574 12,435