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This chapter is covered by the Auditors' Report.

C19 Interest-Bearing Liabilities

Ericsson’s outstanding interest-bearing liabilities were SEK 30.5 (27.2) billion as of December 31, 2008.

INTEREST-BEARING LIABILITIES
2008 2007
Borrowings, current
Current part of non-current borrowings 1) 3,903 3,065
Other current borrowings 1,639 2,831
Total current borrowings 5,542 5,896
Borrowings, non-current
Notes and bond loans 18,879 19,380
Other borrowings, non-current 6,060 1,940
Total non-current interest-bearing liabilities 24,939 21,320
Total interest-bearing liabilities 30,481 27,216
1) Including notes and bond loans of SEK 3,794 (2,898) million.

All outstanding notes and bond loans are issued by the Parent Company under its Euro Medium Term Note program. Bonds issued at a fixed interest rate are swapped to a floating interest rate using interest rate swaps, resulting in a weighted average interest rate of 6.46 percent at December 31, 2008. These bonds are revalued based on changes in benchmark interest rates according to the fair value hedge methodology stipulated in IAS 39.

On June 5, 2008, the GBP bond issued in 2001 of 226 million matured and was repaid. With this GBP bond repaid, Ericsson does not have any interest rate payments on bonds linked to credit rating.

On July 2, 2008, Ericsson signed a seven year loan of SEK 4.0 billion with the European Investment Bank. The loan supports Ericsson’s R&D activities to develop the next generation of mobile broadband technology at sites in Kista, Gothenburg and Linköping in Sweden.

NOTES AND BOND LOANS
Issued-maturing Nominal amount Coupon Currency Book value (SEK m.) (yy-mm-dd) Unrealized hedge gain/loss(incl. in book value)
1999–2009 483 6.500% USD 3,794 2) 09-05-20 –62
2003–2010 471 1) 6.750% EUR 5,256 2) 10-11-28 –189
2004–2012 450 3.340% SEK 450 12-12-07 3)
2007–2012 1,000 5.100% SEK 1,079 2) 12-06-29 –80
2007–2012 2,000 2.728% SEK 2,000 12-06-29 4)
2007–2017 500 5.380% EUR 5,987 2) 17-06-27 –547
2007–2014 375 3.319% EUR 4,107 14-06-27 5)
Total 22,673 –878
1) The EUR 471 million bond is callable after 2007; the fair value of the embedded derivative is included in the book value of the bond.
2) Interest rate swaps are designated as fair value hedges.
3) Contractual repricing date 2009-06-08.
4) Contractual repricing date 2009-03-29.
5) Contractual repricing date 2009-03-27.