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.
|Current part of non-current borrowings 1)||3,461||–|
|Total current borrowings||3,461||–|
|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
|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)|
|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).
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.