Chrysler 2012 Annual Report Download - page 195

Notes
194 Consolidated
Financial
Statements
at 31 December
2012
Asset-backed financing represents the amount of financing received through factoring transactions which do not meet IAS 39 derecognition requirements
and is recognised as an asset in the statement of financial position under Current receivables and other current assets (Note 19). Asset-backed financing
decreased by €261 million in 2012.
The increase in Other debt amounts to €1,378 million in 2012: the Group issued new bonds for €2,535 million during the year and repaid bonds on maturity
for €1,450 million; medium and long-term borrowings that were repaid amount to €1,528 million; while medium and long-term loans obtained by the Group
during the year amounted to €1,925 million.
The annual effective interest rates and the nominal currencies of debt at 31 December 2012 are as follows:
Interest rate
(€ million)
less
than 5%
from 5%
to 7.5%
from 7.5%
to 10%
from 10%
to 12.5%
greater
than 12.5%
Total at 31
December 2012
Euro 4,523 5,862 2,253 98 - 12,736
US Dollar 642 2,384 6,170 8 217 9,421
Brazilian Real 1,165 965 723 89 - 2,942
Canadian Dollar 53 82 725 - - 860
Swiss Franc 10 684 - - - 694
Mexican Peso - - 459 - - 459
Chinese Renminbi 4 321 - - - 325
Polish Zloty 14 145 - 11 - 170
Argentine Peso - - 64 5 84 153
British Pound 88 - - - - 88
Other 36 - 1 1 3 41
Total Debt 6,535 10,443 10,395 212 304 27,889
For further information on the management of interest rate and currency risk reference should be made to Note 35.
The fair value of Debt at 31 December 2012 amounts approximately to €28,360 million (approximately €25,239 million at 31 December 2011). These
amounts have been determined using the quoted market price of financial instruments, if available, or discounting the related future cash flows and using
the interest rates stated in Note 19, suitably adjusted to take account of the Group’s current creditworthiness.
At 31 December 2012, debt secured by assets of the Fiat Group excluding Chrysler amounts to €363 million (€372 million at 31 December 2011), of which
€276 million (€281 million at 31 December 2011) due to creditors for the above mentioned assets acquired under finance leases. The total carrying amount
of assets acting as security for loans amounts to €296 million at 31 December 2012 (€318 million at 31 December 2011).
At 31 December 2012, debt secured by assets of Chrysler amounts to €5,530 million (€5,751 million at 31 December 2011), and includes €4,665 million
(€4,780 million at 31 December 2011) relating to the principal amount of the Secured Senior Notes and the Senior Secured Credit Facility (the “Tranche B
Term Loan” and the “Revolving Credit Facility”, which at 31 December 2012 was undrawn), €183 million (€205 million at 31 December 2011) was due to
creditors for assets acquired under finance leases and other debt and financial commitments for €682 million (€766 million at 31 December 2011).
In addition, at 31 December 2012 the Group’s assets include current receivables to settle Asset-backed financing of €449 million (€679 million at 31
December 2011), see Note 19.