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 |