Note 31 – Borrowing

Group Parent Company
SEK m 2016 2015 2016 2015
Bank loans 659 537 659 537
Overdraft facility 14 12 0 0
Total long-term borrowing 673 549 659 537

The outstanding loan facility matures in April 2018; however, periodic maturity (so-called rolling of drawn loans) takes place regularly. The average rate of interest on bank loans was 0.46% per year (2015: 0.84% per year).

With respect to borrowing, Duni’s exposure on the balance sheet date to changes in interest rates and contractual dates for interest renegotiation is as follows:

SEK m 2016 2015
6 months or less 0 0
6-12 months 0 0
More than one year 659 537
Total 659 537

Duni’s borrowing is valued at the accrued acquisition value applying the effective annual interest rate method. The difference between the values reported in the balance sheets for December 31, 2016 and the nominal values consists of transaction costs.

Duni’s accrued interest is reported as accrued expenses. Shown below are the nominal values excluding accrued interest, and reported values for Duni’s borrowing.

Fair values

Current financing

Duni’s bank loans and overdrafts facility, amounting to SEK 673 m (2015: SEK 549 m) , carry variable interest which is determined in conjunction with each new loan period. The discount effect for such a relatively short period of time is insignificant, and thus the fair value corresponds to the nominal value plus accrued interest.

2016 2015
Reported value Nominal value Reported value Nominal value
Bank loans 659 659 537 537
Overdraft facility 14 14 12 12
Leasing 3 3 3 3
Total 676 676 552 552

Reported amounts, per currency, for the Group’s borrowing are as follows:

SEK m 2016 2015
EUR 662 540
Other currencies 14 12
Total 676 552

Bank loans

Duni has a revolving credit facility in a nominal amount of EUR 130 m which extends until April 2018. Duni also has an EUR 20 m credit facility which extends until May 2018. The interest rate is variable and set at EURIBOR plus a margin, until the next rolling.

Overdraft facility

On behalf of the Group, the Parent Company has arranged an overdraft facility in a nominal amount of SEK 89 m.
As per December 31, 2016, the amount drawn was SEK 14 m.