Financial Liabilities

Financial liabilities were comprised as follows:

Financial Liabilities

 

 

Dec. 31, 2015

 

Dec. 31, 2016

 

 

Total

 

Of which current

 

Total

 

Of which current

 

 

€ million

 

€ million

 

€ million

 

€ million

Bonds and notes / promissory notes

 

15,547

 

1,235

 

15,991

 

2,010

Liabilities to banks

 

2,779

 

1,174

 

1,837

 

820

Liabilities under finance leases

 

474

 

59

 

436

 

59

Liabilities from derivatives

 

765

 

598

 

587

 

309

Other financial liabilities

 

369

 

355

 

730

 

203

Total

 

19,934

 

3,421

 

19,581

 

3,401

A breakdown of financial liabilities by contractual maturity is given below:

Maturities of Financial Liabilities (Previous Year)

 

 

Dec. 31, 2015

 

 

€ million

2016

 

3,421

2017

 

2,245

2018

 

2,828

2019

 

2,066

2020

 

45

2021 or later

 

9,329

Total

 

19,934

Maturities of Financial Liabilities

 

 

Dec. 31, 2016

 

 

€ million

2017

 

3,401

2018

 

3,241

2019

 

2,456

2020

 

44

2021

 

2,714

2022 or later

 

7,725

Total

 

19,581

In addition to promissory notes in the amount of €45 million (2015: €120 million), the Bayer Group has issued the following bonds and notes:

Bonds and Notes

Effective interest rate

 

Stated rate

 

 

 

Nominal volume

 

Dec. 31, 2015

 

Dec. 31, 2016

 

 

 

 

 

 

 

 

€ million

 

€ million

1

Floating-rate coupon comprising three-month EURIBOR plus 22 basis points

2

Floating-rate coupon comprising three-month EURIBOR plus 35 basis points

3

Floating-rate coupon comprising three-month EURIBOR plus 22 basis points

4

Floating-rate coupon comprising three-month USD-LIBOR plus 25 basis points

5

Floating-rate coupon comprising three-month USD-LIBOR plus 28 basis points

6

Floating-rate coupon comprising three-month EURIBOR plus 60 basis points

7

Date of first option to early redeem the bond at par

8

The mandatory convertible notes were allocated to capital reserves and to other financial liabilities.

 

 

 

 

Bayer AG, Germany

 

 

 

 

 

 

Floating1

 

Floating1

 

DIP bond 2014 / 2016

 

EUR 500 million

 

500

 

1.253%

 

1.125%

 

DIP bond 2014 / 2018

 

EUR 750 million

 

748

 

749

5.774%

 

5.625%

 

DIP bond 2006 / 2018

 

GBP 250 million

 

339

 

292

5.541%

 

5.625%

 

DIP bond 2006 / 2018 (increase)

 

GBP 100 million

 

137

 

117

2.086%

 

1.875%

 

DIP bond 2014 / 2021

 

EUR 750 million

 

753

 

755

3.811%

 

3.750%

 

Hybrid bond 2014 / 20247 / 2074

 

EUR 1,500 million

 

1,493

 

1,494

2.517%

 

2.375%

 

Hybrid bond 2015 / 20227 / 2075

 

EUR 1,300 million

 

1,289

 

1,290

3.093%

 

3.000%

 

Hybrid bond 2014 / 20207 / 2075

 

EUR 1,750 million

 

1,743

 

1,745

 

 

 

 

Bayer Capital Corporation B.V., Netherlands

 

 

 

 

 

 

1.333%

 

1.250%

 

DIP bond 2014 / 2023

 

EUR 500 million

 

497

 

497

6.061%

 

5.625%

 

Mandatory Convertible Notes8 2016 / 2019

 

EUR 4,000 million

 

 

 

 

 

 

Bayer Corporation, U.S.A.

 

 

 

 

 

 

6.670%

 

6.650%

 

Notes 1998 / 2028

 

US$ 350 million

 

342

 

351

 

 

 

 

Bayer Holding Ltd., Japan

 

 

 

 

 

 

0.858%

 

0.816%

 

DIP bond 2012 / 2017

 

JPY 30 billion

 

229

 

243

1.493%

 

1.459%

 

DIP bond 2010 / 2017

 

JPY 10 billion

 

76

 

81

3.654%

 

3.575%

 

DIP bond 2008 / 2018

 

JPY 15 billion

 

115

 

122

0.629%

 

0.594%

 

DIP bond 2013 / 2019

 

JPY 10 billion

 

76

 

81

 

 

 

 

Bayer Nordic SE, Finland

 

 

 

 

 

 

Floating2

 

Floating2

 

DIP bond 2013 / 2016

 

EUR 200 million

 

200

 

Floating3

 

Floating3

 

DIP bond 2014 / 2017

 

EUR 500 million

 

500

 

500

 

 

 

 

Bayer U.S. Finance LLC, U.S.A.

 

 

 

 

 

 

Floating4

 

Floating4

 

Notes 2014 / 2016

 

US$ 500 million

 

459

 

Floating5

 

Floating5

 

Notes 2014 / 2017

 

US$ 400 million

 

367

 

379

1.615%

 

1.500%

 

Notes 2014 / 2017

 

US$ 850 million

 

779

 

806

2.564%

 

2.375%

 

Notes 2014 / 2019

 

US$ 2,000 million

 

1,826

 

1,889

3.096%

 

3.000%

 

Notes 2014 / 2021

 

US$ 1,500 million

 

1,372

 

1,419

3.579%

 

3.375%

 

Notes 2014 / 2024

 

US$ 1,750 million

 

1,587

 

1,642

 

 

 

 

Covestro AG, Germany

 

 

 

 

 

 

Floating6

 

Floating6

 

DIP bond 2016 / 2018

 

EUR 500 million

 

 

500

1.076%

 

1.000%

 

DIP bond 2016 / 2021

 

EUR 500 million

 

 

497

1.782%

 

1.750%

 

DIP bond 2016 / 2024

 

EUR 500 million

 

 

497

 

 

 

 

Total

 

 

 

15,427

 

15,946

Debt Issuance Programme

An important means of external financing are the bonds issued under the Debt Issuance Programme (DIP), previously known as the multi-currency European Medium Term Notes (EMTN) program. The Debt Issuance Programme allows bonds in different currencies and with different maturities to be placed flexibly with investors.

Hybrid bonds

The hybrid bonds issued by Bayer AG are subordinated, and 50% of their amount is treated by Moody’s and S & P Global Ratings as equity. They therefore have a more limited effect on the Group’s rating-relevant debt indicators than senior borrowings.

Mandatory convertible notes

On November 22, 2016, Bayer Capital Corporation B.V. placed subordinated mandatory convertible notes in the amount of €4,000 million, which will be converted into no-par shares of Bayer AG at maturity. The notes represented the first part of the equity component of the financing for the planned acquisition of Monsanto Company. After deducting transaction costs of €48 million and recognition of deferred taxes of €191 million, €3,491 million were allocated to capital reserves and €652 million to other financial liabilities.

Bayer AG guarantees all the notes and bonds issued by subsidiaries (except Covestro companies).

Lease liabilities

Lease payments totaling €609 million (2015: €646 million), including €173 million (2015: €172 million) in interest, are to be made under finance leases to the respective lessors in future years.

The liabilities under finance leases mature as follows:

Lease Liabilities (Previous Year)

 

 

Dec. 31, 2015

 

 

Lease payments

 

Interest component

 

Liabilities under finance leases

Maturity

 

€ million

 

€ million

 

€ million

2016

 

86

 

27

 

59

2017

 

76

 

23

 

53

2018

 

68

 

20

 

48

2019

 

60

 

18

 

42

2020

 

60

 

15

 

45

2021 or later

 

296

 

69

 

227

Total

 

646

 

172

 

474

Lease Liabilities

 

 

Dec. 31, 2016

 

 

Lease payments

 

Interest component

 

Liabilities under finance leases

Maturity

 

€ million

 

€ million

 

€ million

2017

 

88

 

29

 

59

2018

 

76

 

24

 

52

2019

 

68

 

21

 

47

2020

 

59

 

17

 

42

2021

 

57

 

15

 

42

2022 or later

 

261

 

67

 

194

Total

 

609

 

173

 

436

Other information

As of December 31, 2016, the Group had undrawn credit facilities at its disposal totaling €55 billion (2015: €6.2 billion), including €50 billion in bridge financing for the planned acquisition of Monsanto Company and €1.5 billion in facilities available to Covestro.

Further information on the accounting for liabilities from derivatives is given in the Note “Financial instruments”.