36. Financial liabilities

An ongoing capital market programme serves as a source of medium-term and long-term financing. In financial year 2013/14, no new transactions were conducted in the context of this programme. The €500 million bond that matured in November 2013 and the €600 million bond that matured in July 2014 were repaid according to schedule.

Short-term financing requirements are covered through the Euro Commercial Paper Programme and a commercial paper programme geared especially to French investors. Both programmes have a maximum volume of €2 billion each. The average amount utilised from both programmes in financial year 2013/14 was €782 million (2012/13: €1,143 million). As of 30 September 2014, the used volume totalled approximately €938 million (30/9/2013: €383 million).

In addition, METRO GROUP has access to syndicated lines of credit totalling €2,525 million (30/9/2013: €2,500 million) with terms ending between January 2017 and April 2019. If the lines of credit are used, the interest rates range between EURIBOR +50.0 basis points (BP) and EURIBOR +55.0 BP. The average amount drawn on the lines of credit in financial year 2013/14 was €0 million (2012/13: €0 million), the average amount drawn as of the closing date was €0 million (30/9/2013: €0 million).

The contract terms for the syndicated lines of credit provide for an increase of 5 to 10 BP in the spread if METRO GROUP’s credit rating is lowered by one step. In the event of a downgrade in METRO GROUP’s rating, the margins increase by 20 to 25 BP.

As of 30 September 2014, METRO GROUP had access to additional bilateral bank lines of credit totalling €1,430 million (30/9/2013: €1,826 million), of which €300 million (30/9/2013: €405 million) is due in up to one year. On the closing date, €865 million (30/9/2013: €1,096 million) of the bilateral lines of credit had been utilised. Of this amount, €260 million (30/9/2013: €310 million) had a remaining term of up to one year.

Unutilised lines of credit of METRO GROUP

The defaulting of a lender can be covered at any time by the existing unutilised credit facilities or the available money and capital market programmes. METRO GROUP therefore does not bear any credit default risk.

METRO GROUP principally does not provide collateral for borrowings. One exception concerns the first-time consolidation of METRO PROPERTIES GmbH & Co. KG as well as its subsidiaries in 2003. As of 30 September 2014, collateral in the amount of €221 million (30/9/2013: €328 million) was provided for financial liabilities.

The following tables show the maturity structure of the financial liabilities. The carrying amounts and fair values indicated include the interest accrued when the maturity is less than one year.

Bonds

Liabilities to banks
(excl. current account)

Promissory note loans

Redeemable loans that are shown under liabilities to banks are listed with the remaining terms corresponding to their redemption date. For remaining terms of over one year, the indicated fair value of these loans generally includes the carrying amount. The difference between the carrying amount and the fair value of the entire loan is shown in maturities up to one year.

The following tables depict the interest rate structure of the financial liabilities:

Bonds

Liabilities to banks
(excl. current account)

Promissory note loans

The fixed interest rate for short-term and medium-term borrowings and the repricing dates of all fixed-interest liabilities essentially correspond to the displayed remaining terms. The repricing dates for variable interest rates are less than one year.

The effects that changes in interest rates concerning the variable portion of borrowings have on the profit or loss for the period and equity of METRO GROUP are described in detail in no. 43 Management of financial risks.