36. Financial liabilities

The company’s medium-term and long-term financing needs are covered by an ongoing capital market bond programme with a maximum volume of €6 billion. On 22 February 2017, the remaining due amount of a maturing bond in the amount of €622 million with a coupon of 4.25% was repaid on time followed by a maturing bond of €50 million with variable interest on 27 July 2017, also on time. By 30 September 2017, the bond issuance programme had been utilised up to €2.451 billion.

Moreover, the remaining amount of €3 million from a promissory note loan, originally in the amount of €26 million, was repaid on 14 March 2017. Short-term financing requirements are covered through the Euro Commercial Paper Programme and a commercial paper programme geared especially to French investors. Both programmes have a maximum volume of €2 billion each. In financial year 2016/17, only the Euro Commercial Paper Programme was used. On average, the programme was used at €658 million during the reporting period. As of 30 September 2017, the utilisation amounted to €754 million (30/9/2016: €0 million). The commercial paper programme aimed at French investors was not extended due to lower demand.

In addition, METRO has access to syndicated credit facilities totalling €1,750 million (30/9/2016: €2,525 million) with terms ending between 2021 and 2022. If the credit facilities are used, the interest rates range between EURIBOR +50.0 basis points (bps) and EURIBOR +55.0 bps. The average amount drawn on the credit facilities in financial year 2016/17 was €0 million (2015/16: €0 million), the average amount drawn as of the closing date was €0 million (30/9/2016: €0 million).

The contract terms for the syndicated credit facilities provide for a decrease of 10 bps in the spread if METRO’s credit rating is raised by one grade. In the event of a downgrade in METRO’s rating, the margins increase by 25 bps.

As of 30 September 2017, METRO had access to additional bilateral bank credit facilities totalling €531 million (30/9/2016: €679 million), of which €174 million (30/9/2016: €435 million) had a remaining term of up to one year. As of the closing date, €281 million (30/9/2016: €275 million) of the bilateral credit facilities had been utilised. Of this amount, €174 million (30/9/2016: €130 million) had a remaining term of up to one year. As of the closing date, there were €250 million of free multi-year bilateral credit facilities available.

Default by a lender can be covered at any time by the existing undrawn credit facilities or the available money and capital market programmes. METRO therefore does not bear any creditor default risk.

METRO principally does not provide collateral for financial liabilities. One exception concerns the first-time consolidation of METRO PROPERTIES GmbH & Co. KG as well as its subsidiaries in 2003.

As of 30 September 2017, collateral in the amount of €28 million (30/9/2016: €35 million) was provided for financial liabilities.

The following tables show the maturity structure of the financial liabilities. The carrying amounts and fair values indicated include the interest accrued when the maturity is less than 1 year.

Redeemable loans that are shown under liabilities to banks are listed with the remaining terms corresponding to their redemption date.

The following tables show the interest rate structure of the financial liabilities:

The fixed interest rate on short- and medium-term financial liabilities and the interest rate adjustment dates of all fixed-interest financial liabilities are essentially the same as those shown. The repricing dates for variable interest rates are less than 1 year.