26. Borrowings

in thousands of EUR

31 December 2016

31 December 2015

Non-current

Bank borrowings

387,187

774,550

Financial leases

1,066

1,194

388,253

775,744

Current

Bank overdrafts

143,396

280,108

Commercial paper

342,000

-

Bank and other borrowings

56,876

80,903

Financial leases

918

726

543,190

361,737

Total borrowings

931,443

1,137,481

Bank facilities

The Group has a revolving credit facility of €1,200 million. In July 2016 the facility was extended for a second time and now has a final maturity date of 17 September 2021. The facility includes also a €100 million uncommitted accordion feature, which can be exercised during the life of the facility after all lenders have consented. The interest rate on the drawings consists of the margin and the applicable rate (i.e. for a loan in euros, the EURIBOR), however the applicable rate can never be below zero percent. In addition to the revolving credit facility the Group has uncommitted bilateral overdraft and money market facilities for a total of €268 million.

At the end of 2016 the Group also has multiple bank guarantee facilities for a total amount of €59 million (2015: €59 million).

Commercial paper

In August 2016 GrandVision commenced with a commercial paper program under which it can issue commercial paper up to the value of €400 million. As of 31 December 2016 the amounts outstanding under the commercial paper program totalled €342 million and have maturity dates of less than 12 months.

The Group utilized the funding received from the commercial paper program to repay part of its bank borrowings.

The maturity of the borrowings of the Group is as follows:

in thousands of EUR

Within 1 year

1-2 years

2-5 years

After 5 years

Total

At 31 December 2016

Borrowings

200,272

-

387,187

-

587,459

Commercial paper

342,000

-

-

-

342,000

Financial leases

918

505

549

12

1,984

543,190

505

387,736

12

931,443

At 31 December 2015

Borrowings

361,011

357

774,193

-

1,135,561

Financial leases

726

538

656

-

1,920

361,737

895

774,849

-

1,137,481

The fair value of the borrowings is approximately equal to the carrying amounts since these loans have a floating interest rate.

The weighted average effective interest rates of the borrowings under the revolving credit facility, the commercial paper program and the bilateral overdraft and money market facilities at balance sheet date were as follows:

2016

2015

Borrowings and commercial paper

0.92%

1.39%

Interest rates on variable-rate borrowings are EURIBOR-based, increased by a certain margin. The margin is determined based on the interest cover and the leverage ratio (note 3.1.3).

The Group has the following undrawn borrowing facilities:

in thousands of EUR

31 December 2016

31 December 2015

- Expiring within one year

172,193

28,471

- Expiring beyond one year

810,964

422,970

983,157

451,441

Financial lease commitments

The largest part of the financial lease commitments relate to furniture and fixtures in Turkey and Peru. 

The financial lease commitments fall due as follows:

31 December 2016

31 December 2015

in thousands of EUR

Payment

Interest

Principal

Payment

Interest

Principal

Within 1 year

980

62

918

778

52

726

1 - 2 years

524

19

505

561

23

538

2 - 5 years

553

4

549

663

7

656

After 5 years

12

-

12

-

-

-

Total

2,069

85

1,984

2,002

82

1,920