Note 31 – Borrowings
| Group | Parent Company | |||
| SEK m | 2017 | 2016 | 2017 | 2016 |
| Long-term | ||||
| Bank loans | 637 | 659 | 837 | 659 |
| Overdraft facility | 2 | 14 | 0 | 0 |
| Total long-term borrowing | 639 | 673 | 837 | 659 |
| Group | Parent Company | |||
| SEK m | 2017 | 2016 | 2017 | 2016 |
| Short-term | ||||
| Bank loans | 197 | – | – | – |
| Total short-term borrowing | 197 | 0 | 0 | 0 |
| Total borrowing | 836 | 673 | 837 | 659 |
With respect to borrowing, Duni’s exposure to changes in interest rates and contractual dates for interest renegotiation is as follows at the end of the reporting period:
| SEK m | 2017 | 2016 |
| 6 months or less | 197 | 0 |
| 6-12 months | 0 | 0 |
| More than one year | 637 | 659 |
| Total | 834 | 659 |
Duni’s borrowings are measured at amortized cost applying the effective interest rate method. The difference between the values recognized in the balance sheets for 12/31/2017 and the nominal values consists of transaction costs.
Duni’s accrued interest is recognized as accrued expenses. Shown below are the nominal values excluding accrued interest, and carrying amounts for Duni’s borrowings.
Breakdown of interest-bearing net debt
The interest-bearing net debt and the change for the respective period are analyzed below.
| SEK m | 2017 | 2016 |
| Other long-term receivables | 2 | 2 |
| Cash and cash equivalents | 227 | 186 |
| Overdraft facility | -2 | -14 |
| Long-term bank loans | -637 | -659 |
| Finance lease liabilities | -4 | -3 |
| Short-term bank loans | -197 | – |
| Pension provisions | -244 | -268 |
| Interest-bearing net debt | -855 | -757 |
| SEK m | 2017 | 2016 |
| Cash and cash equivalents and other long-term receivables | 229 | 187 |
| Pension provisions | -244 | -268 |
| Finance lease liabilities | -4 | -3 |
| Gross debt – fixed interest | – | – |
| Gross debt – variable interest* | -836 | -673 |
| Interest-bearing net debt | -855 | -757 |
* See interest rate swaps in Note 29.
Net debt excluding pension provisions:
| SEK m | Cash and cash equivalents | Other long-term receivables | Overdraft facility | Other financial liabilities | Finance leases maturing within 1 year | Finance leases maturing in more than 1 year | Borrowings maturing within 1 year | Borrowings maturing in more than 1 year | Total |
| Interest-bearing net debt at December 31, 2016 | 186 | 2 | -14 | 0 | -1 | -2 | 0 | -659 | -489 |
| Net cash flow | 41 | 0 | 13 | 19 | 0 | -1 | – | -152 | -81 |
| Exchange rate differences | 0 | 0 | 0 | -19 | 0 | 0 | -7 | -16 | -42 |
| Other non-cash items | – | – | – | – | – | – | -190 | 190 | 0 |
| Interest-bearing net debt at December 31, 2017 | 227 | 2 | -2 | 0 | -1 | -3 | -197 | -637 | -611 |
The interest-bearing net debt that Duni tracks as a key ratio includes pension provisions. In the table above, Duni has chosen not to include pension provisions in order to enable the net cash flow in the table to be compared against cash flow for the year and cash flow used in financing activities in the consolidated cash flow statement.
Fair values
Current financing
Duni’s bank loans and overdraft facility, amounting to SEK 836 m (2016: SEK 673 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.
| 2017 | 2016 | |||
| SEK m | Carrying amount | Nominal value | Carrying amount | Nominal value |
| Bank loans | 834 | 834 | 659 | 659 |
| Overdraft facility | 2 | 2 | 14 | 14 |
| Leases | 4 | 4 | 3 | 3 |
| Total | 840 | 840 | 676 | 676 |
The carrying amounts, per currency, for the Group’s borrowings are as follows:
| SEK m | 2017 | 2016 |
| EUR | 840 | 662 |
| Other currencies | – | 14 |
| Total | 840 | 676 |
Bank loans
Duni’s new financing agreement was signed on December 18, 2017 and is long term. This financing agreement has similar loan terms to the previous facility. The financing now consists of two revolving credit facilities with a nominal amount of EUR 200 m. EUR 150 m expires in December 2020 and EUR 50 m expires in June 2020. Duni also has an EUR 20 m credit agreement which extends until May 2018. The interest rate is variable and set at EURIBOR plus a margin, until the next rolling. The average rate of interest on bank loans was 0.38% (2016: 0.46% per year).
Overdraft facility
On behalf of the Group, the Parent Company has arranged two overdraft facilities with a nominal amount of EUR 17 m.
At 12/31/2017, the amount drawn was EUR 0 m.