24 – Liabilities

Financial indebtedness (Million €)

 

 

 

 

 

Carrying amounts based on effective interest method

 

 

Currency

Nominal value (million, currency of issue)

Effective interest rate

December 31, 2019

December 31, 2018

BASF SE

 

 

 

 

 

Commercial Paper

USD

968

 

861

2,549

1.375%

Bond 2014/2019

EUR

750

1.44%

750

variable

Bond 2017/2019

EUR

1,250

variable

1,252

variable

Bond 2013/2020

EUR

300

variable

300

300

1.875%

Bond 2013/2021

EUR

1,000

1.47%

1,004

1,008

2.5%

Bond 2017/2022

USD

500

2.65%

444

435

1.375%

Bond 2018/2022

GBP

250

1.52%

293

278

2%

Bond 2012/2022

EUR

1,250

1.93%

1,253

1,254

0.925%

Bond 2017/2023

USD

850

0.83%

726

703

0.875%

Bond 2016/2023

GBP

250

1.06%

292

277

2.5%

Bond 2014/2024

EUR

500

2.60%

498

498

1.750%

Bond 2017/2025

GBP

300

1.87%

350

333

0.875%

Bond 2018/2025

EUR

750

0.97%

746

745

3.675%

Bond 2013/2025

NOK

1,450

3.70%

147

146

0.875%

Bond 2017/2027

EUR

1,000

1.04%

987

986

2.670%

Bond 2017/2029

NOK

1,600

2.69%

162

161

0.875%

Bond 2019/2029

EUR

250

1.01%

247

1.5%

Bond 2018/2030

EUR

500

1.625%

494

494

1.5%

Bond 2016/2031

EUR

200

1.58%

198

198

0.875%

Bond 2016/2031

EUR

500

1.01%

493

492

2.37%

Bond 2016/2031

HKD

1,300

2.37%

149

145

1.450%

Bond 2017/2032

EUR

300

1.57%

296

296

3%

Bond 2013/2033

EUR

500

3.15%

492

492

2.875%

Bond 2013/2033

EUR

200

2.96%

198

198

4%

Bond 2018/2033

AUD

160

4.24%

98

96

1.625%

Bond 2017/2037

EUR

750

1.73%

738

737

3.25%

Bond 2013/2043

EUR

200

3.27%

199

199

1.025%

Bond 2018/2048

JPY

10,000

1.03%

82

79

3.89%

U.S. private placement series A 2013/2025

USD

250

3.92%

222

218

4.09%

U.S. private placement series B 2013/2028

USD

700

4.11%

622

610

4.43%

U.S. private placement series C 2013/2034

USD

300

4.45%

266

261

BASF Finance Europe N.V.

 

 

 

 

 

0.0%

Bond 2016/2020

EUR

1,000

0.14%

999

997

3.625%

Bond 2018/2025

USD

200

3.69%

177

174

0.75%

Bond 2016/2026

EUR

500

0.88%

496

495

Other bonds

 

 

 

608

588

Bonds and other liabilities to the capital market

 

 

15,137

18,444

Liabilities to credit institutions

 

 

3,240

2,397

Financial indebtedness

 

 

 

18,377

20,841

Breakdown of financial indebtedness by currency (Million €)

 

December 31, 2019

December 31, 2018

Euro

11,283

12,358

U.S. dollar

4,558

6,160

Pound sterling

935

888

Norwegian krone

309

306

Chinese renminbi

253

163

Hong Kong dollar

149

145

Japanese yen

138

139

Turkish lira

123

127

Australian dollar

98

99

Brazilian real

88

54

Ukrainian hryvnia

83

89

Argentinian peso

75

44

Indian rupee

69

48

South African rand

65

74

Kazakhstani tenge

53

42

Indonesian rupiah

46

43

Other currencies

52

62

Total

18,377

20,841

Maturities of financial indebtedness (Million €)

 

December 31, 2019

December 31, 2018

Following year 1

3,362

5,509

Following year 2

1,078

1,335

Following year 3

2,157

1,178

Following year 4

1,223

2,105

Following year 5

1,310

1,155

Following year 6 and maturities beyond this year

9,247

9,559

Total

18,377

20,841

Other bonds

Other bonds consist primarily of industrial revenue and pollution control bonds issued by the BASF Corporation group that were used to finance investments in the United States. Both the weighted average interest rate of these bonds and their weighted effective interest rate amounted to 2.9% in 2019 and 3.0% in 2018. The average weighted residual term amounted to 158 months as of December 31, 2019 (December 31, 2018: 168 months).

Liabilities to credit institutions

Liabilities to credit institutions rose from €2,397 million as of December 31, 2018 to €3,240 million as of December 31, 2019. The weighted average interest rate on loans amounted to 3.8% in 2019 compared with 5.6% in 2018.

Unused credit lines

BASF SE had committed and unused credit lines with variable interest rates amounting to €6,000 million both as of December 31, 2019 and as of December 31, 2018. In addition, BASF SE had an unused credit line of €380 million (2018: €400 million) for the financing of specific research and development activities as of December 31, 2019.

Other liabilities (Million €)

 

December 31, 2019

December 31, 2018

 

Noncurrent

Current

Noncurrent

Current

Derivatives with negative fair values

188

493

230

308

Liabilities from leases

1,039

381

91

43

Loan and interest liabilities

50

534

75

387

Advances received on orders

537

903

Miscellaneous liabilities

39

398

41

565

Other liabilities that qualify as financial instruments

1,316

2,343

437

2,206

Liabilities related to social security

63

84

58

85

Employee liabilities

25

244

28

262

Liabilities from precious metal trading positions

462

34

Contract liabilities

259

53

155

31

Deferred income

13

33

23

35

Miscellaneous liabilities

2

208

4

345

Other liabilities that do not qualify as financial instruments

362

1,084

268

792

Other liabilities

1,678

3,427

705

2,998

Other liabilities

The increase in liabilities from leases was mainly attributable to the initial application of IFRS 16. Liabilities from precious metal trading positions rose due to higher market prices for precious metals. Contract liabilities include mainly customer payments entitling them to access to licenses over an agreed period of time. The majority of existing contracts have terms of up to seven years. Of the contract liabilities reported as of December 31, 2019, €53 million are expected to be recognized as revenue in 2020.

Secured liabilities (Million €)

 

December 31, 2019

December 31, 2018

Liabilities to credit institutions

15

18

Accounts payable, trade

5

6

Other liabilities

116

166

Secured liabilities

136

190

Liabilities to credit institutions were secured primarily with registered land charges. Other liabilities include collateral for derivative instruments with negative fair values. As in the previous year, there were no secured contingent liabilities in 2019.