Mercedes 2012 Annual Report Download - page 103

108
Refinancing
The fundings raised by Daimler in the year 2012 primarily
served to refinance the leasing and sales-financing business.
For this purpose, Daimler makes use of a broad spectrum
of various financing instruments in different currencies and
markets. They include bank credits, commercial papers in
the money market and bonds with medium and long maturities.
Customer deposits at Mercedes-Benz Bank and the securiti-
zation of receivables from customers in the financial services
business (asset backed securities, ABS) serve as additional
sources of refinancing.
Various issue programs are available for raising longer-term
funds in the capital market. They include the Euro Medium
Term Note program (EMTN) with a total volume of €35 billion,
under which several companies of the Group can issue bonds
in various currencies. Other capital-market programs – smaller
than the EMTN program – exist in local markets such as
South Africa, Mexico, Thailand and Argentina. Capital-market
programs allow flexible, repeated access to the capital markets.
In 2012, the Group covered its liquidity requirements mainly
through the issuance of bonds. A large proportion of those bonds
were placed in the form of so-called benchmark emissions
(bonds with high nominal volumes) in the US dollar and euro
markets. In addition, a large number of smaller bonds were
issued in various currencies in the euro market as well as
in Canada, South Africa, Mexico, Thailand, Brazil, Argentina
and South Korea. The volume of bonds issued breaks down
by currency as follows: approximately one third in US dollars,
one third in euros and one third in other local currencies.
We have thus further diversified our refinancing and further
reduced our dependence on individual capital markets.
The ongoing high degree of uncertainty in the global financial
markets – in particular the European sovereign-debt crisis –
meant that corporate bonds could be placed at attractive condi-
tions by issuers with good ratings. We took the opportunities
that were offered and in the framework of our liquidity manage-
ment tended to raise more funds with longer maturities.
Daimler also issued commercial papers in 2012, but in low
volumes. In addition to a euro commercial paper program, upon
which several European companies can draw, the Group
has commercial paper programs in the United States, Canada,
Australia, South Africa, Mexico and India, with which we
can optimally supplement our local financing.
In the year 2012, the Group successfully placed several
ABS transactions with investors in the United States. Receiv-
ables from customer and dealer financing in a volume of
US$5.4 billion were securitized. We also increased an existing
ABS transaction in Canada.
Another important source of refinancing in 2012 were bank
credits. Funds were provided not only by large, globally
active banks, but increasingly also by a number of smaller
banks with more local activities. This allowed us further
diversification in bank refinancing.
At the end of 2012, Daimler had short and long-term credit
lines totaling €33.7 billion (2011: €29.0 billion), of which
€12.2 billion was not utilized (2011: €9.3 billion). They included
a syndicated credit line arranged in 2010 with a consortium
of international banks with a volume of €7 billion and a maturity
of five years, which was not utilized.
The carrying values of the main refinancing instruments and
the weighted average interest rates are shown in table.  3.35
At December 31, 2012, they are mainly denominated in the
following currencies: 45% in euros, 25% in US dollars, 5%
in Brazilian real, 5% in Japanese yen and 3% in Canadian dollars.
At December 31, 2012, the total financial liabilities shown
in the consolidated balance sheet amounted to €76,251 million
(2011: €62,167 million).
Detailed information on the amounts and terms of financing
liabilities is provided in E Notes 24 and 31 of the Notes
to the Consolidated Financial Statements. E Note 31 also
provides information on the maturities of the other financial
liabilities.
3.35
Refinancing instruments
Book values Average interest rates
Dec. 31,
2012
Dec. 31,
2011
Dec. 31,
2012
Dec. 31,
2011
in % in millions of euros
Notes/bonds and
liabilities from
ABS transactions
1.86
3.17
40,845
29,507
Commercial paper 1.52 1.00 1,768 1,233
Liabilities to financial
institutions
3.80
4.16
20,210
19,175
Deposits in the direct
banking business
2.13
2.40
12,121
11,035