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.