[29] Financial liabilities
As at 31 December 2019, financial liabilities essentially comprised promissory notes and interest-bearing liabilities to banks. The changes in financial liabilities as at 31 December 2019 are shown in > TABLE 088.
in € million |
2019 |
2018 |
|---|---|---|
Promissory notes |
1,317.3 |
1,214.3 |
due within one year |
− |
− |
due in one to five years |
981.0 |
744.5 |
due in more than five years |
336.3 |
469.8 |
|
|
|
Liabilities to banks |
498.3 |
826.4 |
due within one year |
98.8 |
221.9 |
due in one to five years |
399.5 |
604.5 |
due in more than five years |
– |
– |
|
|
|
Other financial liabilities |
4.9 |
4.6 |
due within one year |
4.9 |
4.6 |
due in one to five years |
− |
− |
due in more than five years |
− |
− |
|
|
|
Total current financial liabilities |
103.7 |
226.5 |
Total non-current financial liabilities |
1,716.8 |
1,818.7 |
Promissory notes
In April 2019, KION Group AG issued a further promissory note in a nominal amount of €120.5 million. In return, €20.5 million of the fixed-rate tranche of the promissory note from 2018 was repaid ahead of schedule. As at 31 December 2019, the total nominal amount of the issued promissory notes was €1,310.0 million (2018: €1,210.0 million). The promissory notes maturing in 2022, 2024, 2025 and 2027 have fixed and variable interest rates (EURIBOR + margin), while the promissory note maturing in 2026 has a variable interest rate (EURIBOR + margin). An overview of the nominal amounts of the promissory notes issued by KION Group AG can be found in > TABLE 089.
in € million |
Maturity date |
2019 |
2018 |
|---|---|---|---|
Promissory note (10-year term) |
April 2027 |
27.5 |
27.5 |
Promissory note (7-year term) |
April 2026 |
120.5 |
– |
Promissory note (7-year term) |
June 2025 |
179.5 |
200.0 |
Promissory note (7-year term) |
April 2024 |
236.5 |
236.5 |
Promissory note (5-year term) |
May 2022 |
746.0 |
746.0 |
KION Group AG has entered into interest-rate derivatives in order to hedge the interest-rate risk resulting from the variable-rate and fixed-rate tranches (see note [41]).
The promissory notes are not collateralised. KION Group AG is the borrower in respect of all the payment obligations resulting from the promissory notes.
Liabilities to banks
Liabilities to banks decreased by €328.0 million year on year, mainly due to €400.0 million of the outstanding liability under the acquisition facilities agreement (AFA) being repaid. There was a countervailing increase as a result of a fixed-rate loan of €200.0 million being taken out that will mature in 2021.
KION Group AG has a revolving credit facility of €1,150.0 million. It has a variable interest rate (EURIBOR + margin) and can be drawn down until February 2023. The drawdowns under the revolving credit facility are generally classified as short term. As at 31 December 2019, there were no drawdowns from the revolving credit facility (2018: €101.8 million).
The liabilities to banks are not collateralised. KION Group AG has issued guarantees to the banks for all of the payment obligations.
Other financial liabilities
In November 2019, KION Group AG launched a commercial paper programme with a maximum programme volume of €500.0 million. No commercial paper had been issued as at 31 December 2019, and hence the other financial liabilities related to immaterial items.
Covenants
Among other stipulations, the contractual terms of the liabilities to banks and promissory notes set out certain covenants. In addition, there is a financial covenant that involves ongoing monitoring of adherence to a defined maximum level of leverage. Non-compliance with the covenants or with the defined maximum level of leverage as at a particular reporting date may give lenders a right of termination or lead to an increase in interest payments. All covenants were complied with in the past financial year, as was also the case in 2018.