This item comprises:
Current financial liabilities
| [ XLS ] |
|
€ million |
Dec. 31, 2007 |
Dec. 31, 2006 |
|
Bonds |
– |
– |
|
Commercial Paper |
7.0 |
293.6 |
|
Bank loans and overdrafts |
126.6 |
51.6 |
|
Loans from third parties |
22.9 |
36.1 |
|
Liabilities to related parties |
93.5 |
– |
|
Other financial liabilities |
2.3 |
3.6 |
|
Financial liabilities to other affiliates |
7.1 |
5.7 |
|
Financial leasing liabilities |
1.0 |
0.5 |
|
Liabilities from derivatives (financial transactions) |
40.0 |
107.3 |
|
|
300.4 |
498.4 |
Non-current financial liabilities
| [ XLS ] |
|
€ million |
Dec. 31, 2007 |
Dec. 31, 2006 |
|
Bonds |
969.2 |
477.5 |
|
Bank loans and overdrafts |
15.5 |
74.4 |
|
Loans from third parties |
52.9 |
61.0 |
|
Liabilities to related parties |
– |
– |
|
Other financial liabilities |
– |
0.1 |
|
Financial leasing liabilities |
8.9 |
0.6 |
|
Liabilities from derivatives (financial transactions) |
0.1 |
– |
|
|
1,046.6 |
613.6 |
Bank credit facilities to the Merck Group are as follows:
| [ XLS ] |
| ||||||
|
€ million |
Bank credit |
Utilization* as of Dec. 31, 2007 |
Interest |
Due | ||
|
Syndicated loan 2007 |
2,000.0 |
– |
variable |
2014 | ||
|
Bilateral credit facilities with banks |
22.5 |
11.3 |
fixed |
2017 | ||
|
Bilateral credit facilities with banks |
4.7 |
4.7 |
fixed |
2009 | ||
|
Various bank lines |
531.8 |
126.8 |
fixed/variable |
< 1 year | ||
|
|
2,559.0 |
142.8 |
|
| ||
The €11.5 billion syndicated multi-currency term loan concluded in 2006 to finance the acquisition of Serono S.A., Switzerland, was completely repaid and canceled in fiscal 2007. A new €2 billion multi-currency term loan and revolving credit facility was agreed at much better conditions. The new loan has a term of seven years and was placed with an international banking syndicate.
The current and non-current liabilities of the Merck Group due to banks are denominated in the following currencies:
| [ XLS ] |
|
in % |
Dec. 31, 2007 |
Dec. 31, 2006 |
|
Euros |
68.8 |
78.3 |
|
U.S. dollars |
0.6 |
0.4 |
|
Pounds sterling |
– |
– |
|
Swiss francs |
– |
0.2 |
|
Yen |
1.8 |
1.0 |
|
Other currencies |
28.8 |
20.1 |
|
|
100.0 |
100.0 |
In 2005, Merck KGaA launched its first euro Benchmark Bond in the European debt capital market via Merck Finanz AG, Luxembourg. The size of the issue was €500 million with a maturity of seven years. The bond pays a coupon of 3.75% and was issued at a price of 99.716%. The interest expense of the bond has been made variable through interest rate swaps based on six-month Euribor. The measurement reflects fair value taking into account disagios and transactions costs.
In 2007, Merck KGaA launched another euro Benchmark Bond for €500 million in the European debt capital market. It has a term of three years. The bond pays a coupon of 4.75% and was issued at a price of 99.7%. The measurement reflects amortized cost.
In order to meet short-term capital requirements, Merck KGaA issued a commercial paper program with a volume of €500 million, which had not been utilized as of the reporting date. Merck companies in Taiwan issued commercial paper for an equivalent of €7.0 million as of the balance sheet date.
Liabilities from financial leasing represent the discounted amount of future payments arising from finance leases. This item primarily relates to liabilities from finance leases for buildings.
Information on liabilities due to related parties can be found in Note [48].