37. Financial liabilities

The company’s medium-term and long-term financing needs are covered by an ongoing capital market issuance programme. In the context of this programme, a benchmark bond with a volume of €500 million, a seven-year term and a coupon of 1.375 per cent was issued in the euro capital market in October 2014. In addition, a €600 million bond with a term of ten years and a coupon of 1.5 per cent was placed in March 2015. The €1 billion bond with a coupon of 7.625 per cent that was due in March 2015 was repaid on time.

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 2014/15 was €1,107 million (2013/14: €782 million). As of 30 September 2015, the used volume totalled approximately €941 million (30/9/2014: €938 million).

In addition, METRO GROUP has access to syndicated credit facilities totalling €2,525 million (30/9/2014: €2,525 million) with terms ending between January 2017 and April 2019. If the credit facilities are used, the interest rates range between EURIBOR +50.0 basis points (BP) and EURIBOR +55.0 BP. The average amount drawn on the credit facilities in financial year 2014/15 was €0 million (2013/14: €0 million), the average amount drawn as of the closing date was €0 million (30/9/2014: €0 million).

The contract terms for the syndicated credit facilities 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 2015, METRO GROUP had access to additional bilateral bank credit facilities totalling €1,719 million (30/9/2014: €1,430 million), of which €962 million (30/9/2014: €300 million) have a remaining term of up to one year. As of the closing date, €1,189 million (30/9/2014: €865 million) of the bilateral bank credit facilities had been utilised. Of this amount, €932 million (30/9/2014: €260 million) had a remaining term of up to one year.

Unutilised credit facilities of METRO GROUP

The defaulting of a lender can be covered at any time by the existing undrawn 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 2015, collateral in the amount of €118 million (30/9/2014: €221 million) was provided for borrowings.

The following tables show the maturity structure of the borrowings. 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 table depict the interest rate structure of the borrowings:

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 borrowings essentially correspond to the displayed remaining terms. The repricing dates for variable interest rates are less than one year.