Siemens 2006 Annual Report Download - page 188

Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated and per share amounts)
184
Notes and bonds
The Company has agreements with financial institutions under which it may issue up to €5.0
billion in medium-term notes. In March 2006, the Company updated its €5.0 billion medium-
term note program and issued U.S.$ 1.0 billion under this program comprising U.S.$ 500 mil-
lion floating rate notes due March 2012, bearing interest of 0.15% above LIBOR and U.S.$ 500
million 5.625% notes due March 2016. As of September 30, 2006 and 2005, approximately €1.7
billion and €1 billion, respectively, were outstanding under this medium-term note program.
In August 2006, the Company issued U.S.$5.0 billion notes, which are unconditional and
irrevocably guaranteed as to payment of principal and interest by Siemens. These notes were
issued in four tranches of
■U.S.$750 million Floating Rate Notes (U.S.$ LIBOR + 0.05%) due August 14, 2009,
■U.S.$750 million 5.5% Notes due February 16, 2012,
■U.S.$1.750 billion 5.75% Notes due October 17, 2016 and
■U.S.$1.750 billion 6.125% Notes due August 17, 2026.
For the floating rate notes the Company may, on or after February 14, 2008, redeem all or
some of the Notes at the early redemption amount, according to the conditions of the bond.
For the fixed rate notes, the Company may redeem at any time all or some of the notes at the
early redemption amount (call) according to the conditions of the bond.
In September 2006, the Company issued a subordinated Hybrid Capital Bond, which is on
a subordinated basis guaranteed by Siemens. The subordinated bond was issued in a EUR
tranche of €900 and a British pound tranche of £ 750 million, both with a legal final maturity
on September 14, 2066 and with a call option for Siemens after 10 years or thereafter. The
bonds bear a fixed interest rate (5.25% for the EUR tranche and 6.125% for the British pound
tranche) until September 14, 2016, thereafter, floating rate interest according to the conditions
of the bond.
Details of the Company’s notes and bonds are as follows:
September 30, 2006 September 30, 2005
Currency Currency
(notional amount) €* (notional amount) €*
5.0% 2001/2006 EUR bonds – – – EUR 1,595 1,625
2.5% 2001/2007 Swiss franc bonds CHF 250 158 CHF 250 158
5.5% 1997/2007 EUR bonds EUR 991 991 EUR 991 991
6% 1998/2008 U.S.$ notes USD 970 799 USD 970 865
U.S.$ LIBOR+0.05% 2006/2009 U.S.$ notes USD 750 592 – – –
1.375% 2003/2010 EUR convertible notes EUR 2,497 2,497 EUR 2,500 2,500
11% 2003/2010 EUR senior notes EUR 56 61 EUR 74 86
5.75% 2001/2011 EUR bonds EUR 2,000 2,107 EUR 2,000 2,226
5.5% 2006/2012 U.S.$ notes USD 750 601 – – –
U.S.$ LIBOR+0.15% 2006/2012 U.S.$ notes USD 500 394 – – –
5.75% 2006/2016 U.S.$ notes USD 1,750 1,413 – – –
5.625% 2006/2016 U.S.$ notes USD 500 399 – – –
6.125% 2006/2026 U.S.$ notes USD 1,750 1,428 – – –
5.25% 2006/2066 EUR bonds EUR 900 898 – – –
6.125% 2006/2066 GBP bonds GBP 750 1,096 – – –
13,434 8,451
* Includes adjustments for fair value hedge accounting.