Siemens 2007 Annual Report Download - page 250

250 Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated and per share amounts)
Notes and bonds
The Company has agreements with fi nancial 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 million fl oating 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, 2007 and 2006, approximately €1.4 billion and €1.7 billion,
respectively, were outstanding under this medium-term note program.
In August 2006, the Company issued U.S.$5.0 billion notes, which are uncondi-
tional and irrevocably guaranteed as to payment of principal and interest by Sie-
mens. 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.$1.750 billion 6.125% Notes due August 17, 2026.
For the fl oating rate notes the Company may, on or after February 14, 2008,
redeem all or some of the Notes at the early redemption amount, according to the
conditions of the bond. For the fi xed rate notes, the Company may redeem at any
time all or some of the notes at the early redemption amount (call) according to
the conditions of the bond.
In September 2006, the Company issued a subordinated Hybrid Capital Bond,
which is on a subordinated basis guaranteed by Siemens. The subordinated bond
was issued in a EUR tranche of €900 and a British pound tranche of £750 million,
both with a legal fi nal maturity on September 14, 2066 and with a call option for
Siemens after 10 years or thereafter. The bonds bear a fi xed interest rate (5.25%
for the EUR tranche and 6.125% for the British pound tranche) until September 14,
2016, thereafter, fl oating rate interest according to the conditions of the bond.
Details of the Company’s notes and bonds are as follows:
September 30, 2007 September 30, 2006
Currency
(notional amount) €*
Currency
(notional amount) €*
2.5% 2001/2007 Swiss franc bonds – – – CHF 250 158
5.5% 1997/2007 EUR bonds – – – EUR 991 991
6% 1998/2008 U.S.$ notes USD 970 693 USD 970 798
U.S.$ LIBOR+0.05% 2006/2009 U.S.$ notes USD 750 529 USD 750 592
1.375% 2003/2010 EUR convertible notes – – – EUR 2,497 2,252
11% 2003/2010 EUR senior notes – – – EUR 56 61
5.75% 2001/2011 EUR bonds EUR 2,000 2,041 EUR 2,000 2,109
5.5% 2006/2012 U.S.$ notes USD 750 540 USD 750 599
U.S.$ LIBOR+0.15% 2006/2012 U.S.$ notes USD 500 351 USD 500 394
5.75% 2006/2016 U.S.$ notes USD 1,750 1,259 USD 1,750 1,408
5.625% 2006/2016 U.S.$ notes USD 500 356 USD 500 398
6.125% 2006/2026 U.S.$ notes USD 1,750 1,251 USD 1,750 1,419
5.25% 2006/2066 EUR bonds EUR 900 849 EUR 900 891
6.125% 2006/2066 GBP bonds GBP 750 1,020 GBP 750 1,087
8,889 13,157
* Includes adjustments for fair value hedge accounting.