Mercedes 2008 Annual Report Download - page 74

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The carrying values of the main financial instruments and the
weighted average interest rates for the year 2008 are shown in
the following table:
The financial instruments shown in the above table as of December
31, 2008 are mainly denominated in the following currencies:
48% in US dollars, 22% in euros, 7% in Japanese yen, 4% in British
pounds and 3% in Canadian dollars.
As of December 31, 2008, the financing liabilities shown in the
consolidated balance sheet, which include deposits from the
direct banking business, amounted to €58,637 million (December
31, 2007: €54,967 million). Of the financing liabilities, €54.189
million or 92% was accounted for by the financial services business
(December 31, 2007: €49,948 million or 91%). Detailed infor-
mation on the amounts and terms of financing liabilities is provided
in Notes 23 and 30 of the Notes to the Consolidated Financial
Statements. Note 30 also provides information on the maturities
of the other financial liabilities.
Refinancing
Daimler’s refinancing measures are primarily determined by its
financial services activities. Daimler makes use of a broad spec-
trum of financial instruments to cover its funding requirements.
Depending on funding requirements and market conditions,
Daimler issues commercial paper, bonds and financial instruments
secured by receivables in various currencies. Credit lines are
also used to cover financing requirements.
In the year 2008, the Group covered its liquidity requirements
mainly through the issuance of commercial paper and bonds and
with bank credit. In addition, Daimler made use of its surplus liq-
uidity at the end of 2007, which was related to the transfer of a
majority interest in Chrysler in August 2007, to refinance and
repay funds raised on the capital market and money market. The
refinancing measures carried out in 2008 included the success-
ful issue of the following benchmark notes denominated in euros:
the issue of €1.25 billion of euro bonds maturing in June 2010,
€1.5 billion of euro bonds maturing in September 2011, €1.0 billion
of euro bonds maturing in January 2012, €750 million of euro
bonds maturing in May 2012 and €750 million of euro bonds matu-
ring in September 2015. There were also various smaller issues
of medium-term note programs in the form of private placements.
In Japan, Daimler AG issued a Samurai bond with varying matu-
rities in a total volume of €0.3 billion. Despite the financial market
crisis, Daimler had relatively good access to the capital market
in 2008. However, capital could only be raised at significantly hig-
her interest rates, particularly in the fourth quarter.
At the end of 2008, Daimler had short-term and long-term credit
lines totaling €22.7 billion, of which €8.5 billion was not utilized.
These credit lines include a non-utilized syndicated US $5 billion
credit facility, which is available until December 2011. In order
to strengthen the Group’s liquidity, in October 2008 a 364-day
credit facility of €3 billion was agreed upon with a consortium
of international banks, which is also still available in its full amount.
These credit facilities serve as collateral for commercial-paper
drawings and provide funds for general business purposes.
Book value
Dec. 31,
2007
Book value
Dec. 31,
2008
Average
interest rates
Dec. 31, 2008
35,661
112
12,563
34,093
2,320
14,608
5.18
5.63
5.72
Bonds/notes
Commercial paper
Liabilities to banks
Amounts in millions of €In %