P18 Interest-Bearing Liabilities
As per December 31, 2011, the Parent Company’s outstanding interest-bearing liabilities, excluding liabilities to subsidiaries, were SEK 24.7 billion.
| Interest-bearing liabilities | ||
| 2011 | 2010 | |
| Borrowings, current | ||
| Current part of non-current borrowings 1) | 3,461 | – |
| Total current borrowings | 3,461 | – |
| Borrowings, non-current | ||
| Notes and bond loans | 17,197 | 20,646 |
| Liabilities to credit institutions | 4,000 | 4,000 |
| Total non-current interest-bearing liabilities | 21,197 | 24,646 |
| Total interest-bearing liabilities | 24,658 | 24,646 |
| 1) Including notes and bond loans of SEK 3.461 (0) million. | ||
| NOTES AND BOND LOANS | ||||||||
| Issued-maturing | Nominal amount | Coupon | Currency | Book value (SEK million) | Maturity date (yy-mm-dd) |
Unrealized hedge gain/loss (incl. in book value) | ||
| 2004–2012 | 450 | 3.305% | SEK | 450 | December 7, 2012 | 2) | ||
| 2007–2012 | 1,000 | 5.100% | SEK | 1,011 | June 29, 2012 | –11 | ||
| 2007–2012 | 2,000 | 2.885% | SEK | 2,000 | June 29, 2012 | 3) | ||
| 2007–2014 | 375 | 1.704% | EUR | 3,345 | June 27, 2014 | 4) | ||
| 2007–2017 | 500 | 5.380% | EUR | 5,161 | 1) | June 27, 2017 | –719 | |
| 2009–2013 | 600 | 5.000% | EUR | 5,450 | 1) | June 24, 2013 | –109 | |
| 2009–2016 | 300 | 3.62125% | USD | 2,069 | June 23, 2016 | 5) | ||
| 2010–2020 | 170 | 2.96125% | USD | 1,172 | December 23, 2020 | 6) | ||
| Total | 20,658 | –839 | ||||||
| 1) Interest rate swaps are designated as fair value hedges. 2) Next contractual repricing date 2012-06-07 (semi-annual). 3) Next contractual repricing date 2012-03-29 (quarterly). 4) Next contractual repricing date 2012-03-27 (quarterly). 5) Next contractual repricing date 2012-03-23 (quarterly). 6) Next contractual repricing date 2012-03-23 (quarterly). |
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All outstanding notes and bond loans are issued under the Euro Medium-Term Note (EMTN) program. Bonds issued at a fixed interest rate are normally swapped to a floating interest rate using interest rate swaps leaving a maximum of 50% of outstanding loans at fixed interest rates. It resulted in weighted average interest rate of 4.21% (2.65%). These bonds are revalued based on changes in benchmark interest rates according to the fair value hedge methodology stipulated in IAS 39.
In 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.
