36. Financial liabilities

The company’s medium-term and long-term financing needs are covered by an ongoing bond programme with a maximum volume of €5 billion. On 20 January 2020, a due bond of €125 million with a coupon of 4.05% was repaid on time. As of 30 September 2020, the utilised bond issuance programme amounted to a total of €1,776 million .

Short-term financing requirements are covered through the Euro with a maximum volume of €2 billion. On average, the programme was used at €575 million during the reporting period. As of 30 September 2020, the utilisation amounted to €295 million (30/9/2019: €387 million).

In addition, METRO has access to syndicated credit facilities totalling €1,750 million (30/9/2019: €1,750 million) with terms ending between 2021 and 2024. If the credit facilities are used, the interest rates range between Euribor +50.0 basis points (BP) and Euribor +55.0 BP. The contract terms for the syndicated credit facilities provide for a decrease of 10 BP in the spread if METRO’s credit is raised by one grade. In the event of a downgrade in METRO’s rating, the margins increase by 25 BP.

In financial year 2019/20, a syndicated credit facility of €900 million as well as temporary multi-year bilateral credit facilities of €200 million were drawn down. The syndicated credit facility and the multi-year bilateral credit facilities were utilised because liquidity on the money market was limited in the wake of the Covid-19 pandemic and short-term refinancing via commercial papers was not ensured. All drawn credit facilities were repaid prior to maturity.

As of 30 September 2020, METRO had access to additional bilateral bank credit facilities totalling €400 million (30/9/2019: €609 million), of which €86 million (30/9/2019: €279 million) had a remaining term of up to one year. As of the closing date, €150 million (30/9/2019: €359 million) of the bilateral credit facilities had been utilised. Of this amount, €86 million (30/9/2019: €279 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.

Undrawn credit facilities by METRO

 

30/9/2019

30/9/2020

 

 

Remaining term

 

Remaining term

€ million

Total

up to
1 year

over
1 year

Total

up to
1 year

over
1 year

Bilateral credit facilities

609

279

330

400

86

314

Utilisation

−359

−279

−80

−150

−86

−64

Undrawn bilateral credit facilities

250

0

250

250

0

250

Syndicated credit facilities

1,750

0

1,750

1,750

900

850

Utilisation

0

0

0

0

0

0

Undrawn syndicated credit facilities

1,750

0

1,750

1,750

900

850

Total credit facilities

2,359

279

2,080

2,150

986

1,164

Total utilisation

−359

−279

−80

−150

−86

−64

Total undrawn credit facilities

2,000

0

2,000

2,000

900

1,100

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 2020, collateral securities in the amount of €10 million (30/9/2019: €11 million) was provided for financial liabilities.

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

Bonds incl. commercial papers

 

 

30/9/2019

30/9/2020

 

 

Nominal values

Nominal values

Carrying amounts

Fair values

Nominal values

Nominal values

Carrying amounts

Fair values

Currency

Remaining term

in million currency

€ million

€ million

€ million

in million currency

€ million

€ million

€ million

EUR

up to 1 year

512

512

531

295

295

310

1 to 5 years

1,126

1,126

1,122

1,726

1,726

1,722

over 5 years

650

650

648

50

50

50

 

2,288

2,288

2,301

2,375

2,071

2,071

2,082

2,117

Liabilities to banks (excl. current account)

 

 

30/9/2019

30/9/2020

 

 

Nominal values

Nominal values

Carrying amounts

Fair values

Nominal values

Nominal values

Carrying amounts

Fair values

Currency

Remaining term

in million currency

€ million

€ million

€ million

in million currency

€ million

€ million

€ million

EUR

up to 1 year

183

183

184

2

2

2

1 to 5 years

12

12

12

9

9

9

over 5 years

0

0

0

0

0

0

 

195

195

196

197

11

11

11

11

PKR

up to 1 year

0

0

0

2,337

12

12

1 to 5 years

0

0

0

547

3

3

over 5 years

0

0

0

0

0

0

 

0

0

0

0

2,884

15

15

15

INR

up to 1 year

0

0

0

0

0

0

1 to 5 years

2,700

35

35

2,700

31

31

over 5 years

0

0

0

0

0

0

 

2,700

35

35

35

2,700

31

31

31

JPY

up to 1 year

625

5

5

1,600

13

13

1 to 5 years

1,600

14

14

0

0

0

over 5 years

0

0

0

0

0

0

 

2,225

19

19

19

1,600

13

13

13

MMK

up to 1 year

8,300

5

5

31,690

21

22

1 to 5 years

30,580

18

18

30,580

20

20

over 5 years

0

0

0

0

0

0

 

38,880

23

23

30

62,270

41

42

47

UAH

up to 1 year

260

10

10

0

0

0

1 to 5 years

0

0

0

0

0

0

over 5 years

0

0

0

0

0

0

 

260

10

10

10

0

0

0

0

Promissory note loans

 

 

30/9/2019

30/9/2020

 

 

Nominal values

Nominal values

Carrying amounts

Fair values

Nominal values

Nominal values

Carrying amounts

Fair values

Currency

Remaining term

in million currency

€ million

€ million

€ million

in million currency

€ million

€ million

€ million

EUR

up to 1 year

0

0

1

0

0

1

1 to 5 years

54

54

54

54

54

54

over 5 years

0

0

0

0

0

0

 

54

54

55

61

54

54

55

58

Redeemable loans that are reported 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:

Bonds incl. commercial papers

 

 

 

30/9/2019

30/9/2020

Interest terms

Currency

Remaining term

Nominal values
€ million

Nominal values
€ million

Fixed interest

EUR

up to 1 year

125

0

1 to 5 years

1,126

1,726

over 5 years

650

50

Variable interest

EUR

up to 1 year

387

295

1 to 5 years

0

0

over 5 years

0

0

Liabilities to banks (excl. current account)

 

 

 

30/9/2019

30/9/2020

Interest terms

Currency

Remaining term

Nominal values
€ million

Nominal values
€ million

Fixed interest

EUR

up to 1 year

183

2

1 to 5 years

12

9

over 5 years

0

0

PKR

up to 1 year

0

12

1 to 5 years

0

3

over 5 years

0

0

INR

up to 1 year

0

0

1 to 5 years

35

31

over 5 years

0

0

MMK

up to 1 year

5

21

1 to 5 years

18

20

over 5 years

0

0

UAH

up to 1 year

10

0

1 to 5 years

0

0

over 5 years

0

0

Variable interest

JPY

up to 1 year

5

13

1 to 5 years

14

0

over 5 years

0

0

Promissory note loans

 

 

 

30/9/2019

30/9/2020

Interest terms

Currency

Remaining term

Nominal values
€ million

Nominal values
€ million

Fixed interest

EUR

up to 1 year

0

0

1 to 5 years

54

54

over 5 years

0

0

Variable interest

EUR

up to 1 year

0

0

1 to 5 years

0

0

over 5 years

0

0

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 one year.

  • The effects of interest rate changes in the variable share of financial liabilities on profit or loss for the period and the equity of METRO are described in detail in no. 44 – management of financial risks.
Commercial Paper Programme
Ongoing capital market programme typical of money markets that covers short-term financing needs. It facilitates the issuance of commercial papers (CP) as discounted, unsecured bearer bonds without standardised terms of maturity.
Glossary
Rating
In the financial sector, rating represents the systematic, qualitative measurement of creditworthiness. Ratings are expressed in various grades of creditworthiness. Renowned agencies that issue ratings are Standard & Poor’s, Moody’s and Fitch.
Glossary
Fair value
Recognised fair value. Amount that would be received in return for the disposal of an asset or paid for the assignment of a debt in an ordinary transaction conducted between market participants on the assessment date.
Glossary