20. Liabilities

Other bonds

Other bonds consisted of a bond issued by BASF Corporation that was used to finance investments in the United States. Both the nominal interest rate and effective interest rate of this bond were 6.95% in 2023. Its remaining term to maturity is 54 months.

Liabilities to credit institutions

Liabilities to credit institutions increased from €3,273 million as of December 31, 2022, to €4,830 million as of December 31, 2023. The weighted average interest rate on loans amounted to 4.2% in 2023, compared with 5.7% in 2022.

Unused credit lines

BASF SE had committed and unused credit lines, when drawn with variable interest rates, amounting to €6,000 million as of December 31, 2023 (2022: €9,350 million). In 2023, BASF Integrated Site (Guangdong) Co. Ltd., China, signed a 40 billion Chinese renminbi syndicated bank term loan facility with a maturity of 15 years for its Verbund site in Zhanjiang, and had utilized an amount of 1 billion Chinese renminbi (€127 million) as of December 31, 2023. When drawn, the interest rate is variable.

Other liabilities

The majority of contract liabilities have terms of up to five years. Of the contract liabilities reported as of December 31, 2023, €36 million are expected to be recognized as revenue in 2024.

• For more information on financial risks and derivative instruments, see Note 25
• For more information on liabilities arising from leases, see Note 15

Liabilities to credit institutions were secured primarily with registered land charges. Secured other liabilities relate primarily to derivatives with negative fair values that are secured with other receivables and miscellaneous assets.