Siemens 2008 Annual Report Download - page 252

156 Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated and per share amounts)
Assignable loans
In the third quarter of scal 2008, the Company raised assignable loans. The loans, totaling €1.1 billion in nomi-
nal and carrying amount as of September 30, 2008, are for general corporate purposes and were issued in four
tranches: €370 oating rate notes (European Interbank Offered Rate (EURIBOR + 0.55%) due June 12, 2013;
€113.5, 5.283% notes due June 12, 2013 with a carrying amount of €114; €283.5 oating rate notes (EURIBOR +
0.70%) due June 12, 2015 and €333, 5.435% notes due June 12, 2015.
Notes and bonds
The Company has agreements with nancial institutions under which it may issue up to €5.0 billion in medium-
term notes. As of September 30, 2008 and 2007, €4.9 billion and €1.4 billion, respectively, were issued and are
outstanding. In March 2006, the Company issued U.S.$1 billion under this program, comprising U.S.$500 oat-
ing rate notes due March 2012, bearing interest of 0.15% above LIBOR and U.S.$500, 5.625% xed rate notes due
March 2016 in addition to the outstanding amount of U.S.$970 (approximately €678) of the 6.0% U.S.$-bond,
which was redeemed in scal 2008. In scal 2008, Siemens updated the program and issued in total additional
€4.15 billion xed-rate notes in three tranches comprising €1.55 billion 5.250% note due December 12, 2011,
€1 billion 5.375% note due June 11, 2014, and €1.6 billion 5.625% note due June 11, 2018.
In scal 2008, the Company issued €500 oating rate extendible notes initially maturing in June 2009. The
maturity date can be extended twice by the note-holder to June 2010 and June 2011 (extension option). The
notes bear 0.23% interest above EURIBOR (0.25% and 0.27% above EURIBOR, respectively, subject to the exten-
sion option).
In August 2006, the Company issued U.S.$5.0 billion notes (approximately €3.5 billion). These notes were issued
in four tranches comprising: U.S.$750 Floating Rate Notes (U.S.$ LIBOR + 0.05%) due August 14, 2009; U.S.$750,
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. With respect to the oating rate notes, the Company may, on or after Febru-
ary 14, 2008, redeem all or some of the Notes at the early redemption amount, according to the conditions of the
bond. For the 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 nal maturity on September 14, 2066 and with a call option for
Siemens after 10 years or thereafter. The bonds bear a xed interest rate (5.25% for the EUR tranche and
6.125% for the British pound tranche) until September 14, 2016, thereafter, oating rate interest according
to the conditions of the bond.