Siemens 2007 Annual Report Download - page 249

Notes to Consolidated Financial Statements 249
(in millions of €, except where otherwise stated and per share amounts)
Notes to Consolidated Financial Statements
22 Debt
As of September 30, 2007, weighted-average interest rates for loans from
banks, other fi nancial indebtedness and obligations under fi nance leases were
5.7% (2006: 5.9%), 4.9% (2006: 5.1%) and 5.8% (2006: 6.5%), respectively. In some
countries, the Company has pledged securities and executed promissory notes to
secure borrowings in conformity with local practice.
Commercial paper
In April 2007 the Company restructured its existing European- and US-commer-
cial paper program and established a U.S.$ 9.0 billion (approximately €6.3 billion)
global multi-currency commercial paper program including extendable notes
capabilities. As of September 30, 2007 and 2006, outstanding global commercial
paper totaled €4,332 and € –, respectively, with interest rates as of September 30,
2007 from 4.23% to 5.31% (see also Other fi nancial indebtedness below).
Credit facilities
The credit facilities at September 30, 2007 consisted of approximately €6.8 billion
in 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-cur-
rency 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. The U.S. $1.0 billion term loan was drawn in January 2007 and
bears interest of 0.15% above LIBOR (London Interbank Offered Rate). As of Sep-
tember 30, 2007 and 2006, approximately €6.1 billion and €7.6 billion, respec-
tively, of these lines of credit remained unused. Commitment fees for the years
ended September 30, 2007 and 2006 totaled approximately €2.7 and €2, respec-
tively. The facilities are for general business purposes.
September 30,
2007 2006
Short-term
Notes and bonds 693 1,149
Loans from banks 478 659
Other fi nancial indebtedness 4,418 314
Obligations under fi nance leases 48 53
Short-term debt and current maturities of long-term debt 5,637 2,175
Long-term
Notes and bonds (maturing 2008–2066) 8,196 12,008
Loans from banks (maturing 2008–2016) 871 342
Other fi nancial indebtedness (maturing 2008–2027) 555 508
Obligations under fi nance leases 238 264
Long-term debt 9,860 13,122
15,497 15,297