22 – Liabilities

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Financial indebtedness (million €)
			Carrying amounts based on effective interest method
	Nominal volume (million currency of issuance)	Effective interest rate	2010	2009
3.5% Euro Bond 2003/2010 of BASF SE	1,000	3.63%	–	999
4% Euro Bond 2006/2011 of BASF SE	1,000	4.05%	1,000	999
3.375% Euro Bond 2005/2012 of BASF SE	1,400	3.42%	1,399	1,399
3.75% Euro Bond 2009/2012 of BASF SE	1,350	3.97%	1,345	1,343
4.5% Euro Bond 2006/2016 of BASF SE	500	4.62%	497	497
4.25% Euro Bond 2009/2016 of BASF SE	200	4.40%	199	198
5.875% GBP Bond 2009/2017 of BASF SE	400	6.04%	461	446
4.625% Euro Bond 2009/2017 of BASF SE	300	4.69%	299	299
3.25% CHF Bond 2008/2011 of BASF Finance Europe N.V.	300	3.39%	240	202
6% Euro Bond 2008/2013 of BASF Finance Europe N.V.	1,250	6.15%	1,245	1,244
5% Euro Bond 2007/2014 of BASF Finance Europe N.V.	1,000	5.09%	997	996
5% Euro Bond 2007/2014 of BASF Finance Europe N.V.	250	4.83%	251	252
3.625% CHF Bond 2008/2015 of BASF Finance Europe N.V.	200	3.77%	159	134
5.125% Euro Bond 2009/2015 of BASF Finance Europe N.V.	1,500	5.30%	1,489	1,488
5.125% Euro Bond 2009/2015 of BASF Finance Europe N.V.	500	4.38%	515	517
4.5% Euro Medium Term Note 2009/2016 of BASF Finance Europe N.V.	150	4.56%	150	149
USD Extendible Floating Rate Notes of BASF Finance Europe N.V.		0.33%	–	3
3.25% CHF Bond 2006/2012 of Ciba Spezialitätenchemie Finanz AG	225	3.32%	177	147
4.875% Euro Bond 2003/2018 of Ciba Spec. Chem. Finance Luxemb. S.A.	477	4.88%	401	393
USD commercial paper	1,850		1,384	487
Other bonds			696	650
Bonds and other liabilities to the capital markets			12,904	12,842
Liabilities to credit institutions			2,135	1,977
			15,039	14,819

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Breakdown of financial indebtedness by currency (million €)
	2010	2009
Euro	10,980	12,063
U.S. dollar	2,177	1,254
Swiss franc	576	483
British pound	543	560
Chinese renminbi	391	336
Brazilian real	205	–
Argentinean peso	30	41
South African rand	28	–
Japanese yen	25	15
Other	84	67
	15,039	14,819

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Maturities of financial indebtedness (million €)
	2010	2009
Following year 1	3,369	2,375
Following year 2	3,112	1,363
Following year 3	2,100	3,067
Following year 4	1,321	2,075
Following year 5	2,539	1,329
Following year 6 and thereafter	2,598	4,610
	15,039	14,819

Bonds and other liabilities to the capital markets

Other bonds consist primarily of industrial revenue and pollution control bonds of the BASF Corporation group that are used to finance investments in the United States. The weighted-average interest rate was 2.2% in 2010 (2009: 2.3%). The weighted-average effective interest rate was 2.2% in 2010 (2009: 2.3%). The average residual term amounted to 222 months as of December 31, 2010, and 234 months as of December 31, 2009.

Liabilities to credit institutions

The weighted-average interest rate on borrowings was 3.6% in 2010 (2009: 3.0%). To finance the investment in the expansion of the OPAL natural gas pipeline, €342 million was borrowed at an interest rate of 3.1% by WINGAS GmbH & Co. KG.

BASF SE had committed and unused credit lines with variable interest rates of €4,490 million as of December 31, 2010, and €4,165 million as of December 31, 2009.

Other liabilities

The increase in other liabilities in 2010 related, among other things, to the negative fair value of derivatives concluded to hedge against currency fluctuations and rising raw material prices.

Liabilities to companies in which participations are held include the proportionate amount of liabilities to joint venture companies accounted for using the proportional consolidation method of €195 million in 2010, and €313 million in 2009, thereof miscellaneous liabilities of €57 million in 2010, and €145 million in 2009. Further miscellaneous liabilities relating to participations accounted for using the equity or cost method were €261 million in 2010, and €188 million in 2009. In addition, miscellaneous liabilities contained precious metal derivatives with a negative fair value of €74 million as of the balance sheet date 2010 compared with €52 million in 2009.
For more information on financial risks and derivative financial instruments, see Note 26
For more information on finance lease payables, see Note 27

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Other liabilities (million €)
	2010			2009
	Short-term	Long-term		Short-term	Long-term
Advances received on orders	283	–		116	–
Liabilities on bills	73	2		52	23
Liabilities related to social security	166	26		156	30
Non-trade liabilities to joint venture partners	314	433		271	437
Derivative instruments	369	7		279	–
Liabilities arising from finance leases	10	49		18	62
Employee liabilities	328	94		211	40
Accrued interest on bonds and other loans	247	–		237	–
Miscellaneous liabilities	858	87		785	124
Deferred income	154	203		115	182
	2,802	901		2,240	898

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Secured liabilities (million €)
	2010	2009
Liabilities to credit institutions	14	8
Miscellaneous liabilities	26	37
	40	45