[30] Financial liabilities

As at December 31, 2022, non-current and current financial liabilities essentially comprised promissory notes, the issued corporate bond, and liabilities to banks. Financial liabilities as at the reporting date break down as follows:

Maturity structure of financial liabilities
in € million	Dec. 31, 2022	Dec. 31, 2021
Promissory notes	319.2	418.5
due within one year	–	92.5
due in one to five years	319.2	298.6
due in more than five years	–	27.5

Bonds	496.8	495.6
due within one year	–	–
due in one to five years	496.8	495.6
due in more than five years	–	–

Liabilities to banks	819.3	104.0
due within one year	304.2	57.4
due in one to five years	515.1	46.6
due in more than five years	–	–

Other financial liabilities	353.3	32.4
due within one year	322.6	1.9
due in one to five years	30.7	30.3
due in more than five years	–	0.1

Total current financial liabilities	626.7	151.9

Total non-current financial liabilities	1,361.8	898.7

Promissory notes

As at December 31, 2022, the total nominal amount of the issued promissory notes was €324.5 million (December 31, 2021: €417.0 million). The promissory notes maturing in 2024, 2025, 2026, and 2027 have fixed and variable interest rates (Euribor + margin). As scheduled, the fixed-rate tranche of the promissory note of €92.5 million was repaid in May 2022. The following table shows the nominal amounts of the promissory notes issued by KION GROUP AG:

Promissory note
in € million	Maturity date	Dec. 31, 2022	Dec. 31, 2021
Promissory note (7-year term)	April 2024	69.5	69.5
Promissory note (7-year term)	June 2025	179.5	179.5
Promissory note (7-year term)	April 2026	48.0	48.0
Promissory note (10-year term)	April 2027	27.5	27.5

KION GROUP AG has entered into an interest-rate swap in order to hedge the fair value risk resulting from a fixed-rate tranche. The interest-rate swap is recognized as a fair value hedge in accordance with IFRS 9 (see note [42]).

The promissory notes are not collateralized.

Corporate bond

In 2020, KION GROUP AG launched a corporate bond program (EMTN program) with a total volume of €3 billion. The first bond was placed on the capital markets under this program in 2020 and had a nominal amount of €500.0 million, a maturity date in 2025, and a coupon of 1.625 percent. The bond is not collateralized.

Liabilities to banks

As at December 31, 2022, liabilities to banks related to drawdowns of credit lines and to loans from banks at central and local level.

KION GROUP AG has a syndicated revolving credit facility (RCF). In September 2022, the term of the RCF was extended by one year until October 2027. Then in December 2022, an amendment agreement was signed that increased the total volume from €1,000.0 million to €1,385.7 million. The facility has a variable interest rate; the contractually agreed interest terms are linked to KION GROUP AG’s credit rating and to compliance with sustainability KPIs.

The amount drawn down from the revolving credit facility was €114.6 million as at December 31, 2022 (December 31, 2021: €0.0 million). The unused portion of the RCF therefore stood at €1,271.1 million (December 31, 2021: €1,000.0 million).

As at December 31, 2022, there were also six bilateral bank loans that had been taken out centrally by KION GROUP AG in 2022. These variable-rate loans had a total volume of €575.0 million as at the reporting date (December 31, 2021: €0.0 million), which consisted of €600.0 million of new lending arranged in 2022 and an early repayment of €25.0 million. The bilateral bank loans have a variable rate and mature between 2023 and 2026. In addition, Group companies had drawn down bank loans of €129.7 million (December 31, 2021: €104.0 million). KION GROUP AG generally issues guarantees to the banks for Group companies’ existing payment obligations. The liabilities to banks are not collateralized.

Other financial liabilities

KION GROUP AG launched a commercial paper program in November 2019 and increased the maximum program volume by €250.0 million to €750.0 million in April 2022. As at December 31, 2022, commercial paper of €305.0 million had been issued (December 31, 2021: €0.0 million).

Covenants

The revolving credit facility and a number of promissory notes taken out by KION GROUP AG stipulate adherence to covenants. The agreed financial covenant involves ongoing testing of adherence to a defined maximum level of leverage. As contractually agreed, this calculation is currently suspended in respect of the revolving credit facility entered into in 2021 because KION GROUP AG has two investment-grade credit ratings.

Exceeding the agreed maximum level of leverage as at a particular reference date gives lenders a right of termination.