Chrysler 2005 Annual Report Download - page 133

132 Fiat Group Consolidated Financial Statements at D ecember 31, 2005 - N otes to the Consolidated Financial Statements
02 Fiat Group
28. D ebt
A breakdown of debt and an analysis by due date are as follows:
At December 31, 2005 At December 31, 2004
due between due between
due within one and five due beyond due within one and five due beyond
(in millions of euros) one year years five years Total one year years five years Total
Asset-backed financing 6,907 3,254 49 10,210 6,902 3,223 49 10,174
O ther debt:
Bonds 2,766 2,307 2,561 7,634 2,369 3,029 3,928 9,326
Borrowings from banks 2,877 2,557 128 5,562 8,110 2,266 74 10,450
Loans for banking activities 1,255 – – 1,255 1,322 4 – 1,326
O ther 956 92 52 1,100 751 129 35 915
Total O ther debt 7,854 4,956 2,741 15,551 12,552 5,428 4,037 22,017
Total Debt 14,761 8,210 2,790 25,761 19,454 8,651 4,086 32,191
The item Asset-backed financing represents the amount of financing received through both securitisation and factoring transactions which do
not meet IAS 39 derecognition requirements and is recognised as an asset in the balance sheet under the item Current receivables (N ote 19).
The bonds issued by the Fiat Group are governed by different terms and conditions according to their type as follows:
Euro M edium Term N ote (EM TN Program): notes of approximately 5.5 billion euros guaranteed by Fiat S.p.A. have been issued to date under
this program. Issuers taking part in the program are Fiat Finance & Trade Ltd. S.A. (for an amount outstanding of 5,426 million euros), and
Fiat Finance Canada Ltd. (for an amount outstanding of 100 million euros).
Convertible bonds:these represent the residual debt, 15 million euros remaining after the partial repayment in July 2004, of the 5-year bond
originally convertible into General Motors Corporation common stock (the “Exchangeable bond”) at a conversion price of 69.54 U.S. dollars
per share, bearing interest at 3.25% and repayable on January 9, 2007. In order to hedge the risk, implicit in the bond, of an increase in the
General Motors share price above 69.54 U.S. dollars, the Group purchased call options in 2004 on General Motors common stock.These
options, although originally purchased for hedging purposes, are classified as trading (see also N ote 22).
Other bonds:these refer to the following issues:
- Bonds issued by Case N ew Holland Inc. (“CN H Inc.”) in 2004 (bearing coupon interest at 9.25% and repayable on August 1, 2011 for an
amount of 1,050 million U.S. dollars, equivalent to 890 million euros) and in 2005 (bearing coupon interest at 6.00% and repayable on June
1, 2009 for an amount of 500 million U.S. dollars, equivalent to 424 million euros);the bond indenture contains a series of financial
covenants that are common to the high yield American bond market;
- Bonds issued by CN H America LLC and CN H Capital America for a total amount outstanding of 381 million U.S. dollars, equivalent to
323 million euros;
- O ther minor issues for a total of 43 million euros.
The prospectuses and offering circulars, or their abstracts, relating to these principal bond issues are available on the Group’s website at
www.fiatgroup.com under “Shareholders and Investors - Financial Publications”.
The majority of the bonds issued by the Group contain commitments (“covenants”) by the issuer and in some cases by Fiat S.p.A. as the
guarantor, that are common in international practice for bond issues of this type, when the issuers are in the same industrial segment as that in
which the Group operates. In particular, these covenants may include (i) a negative pledge clause which requires that the benefit of any real
present or future guarantees given as collateral on the assets of the issuer and/or Fiat, on other bonds and other credit instruments should be
extended to these bonds to the same degree, (ii) a pari passu clause, on the basis of which obligations cannot be undertaken which are senior