Annual report 2012

26. Interest-bearing borrowings

This note provides information about the contractual terms of the Company's interest-bearing borrowings. For more information relating to interest rate and foreign currency risk management refer to Note 34 – Financial risk management.

EUR thousand  2012 2011
Non-current borrowings    
Borrowings from foreign banks 116,934 146,515
- current portion of non-current borrowings -29,580 -29,580
- non-current portion of borrowings 87,354 116,935
Borrowings from local banks 10,250 16,125
- current portion of non-current borrowings -5,500 -5,875
- non-current portion of borrowings 4,750 10,250
Total non-current borrowings 92,104 127,185
Current borrowings    
Borrowings from domestic banks 0 0
Borrowings from group companies 0 0
Current portion of non-current borrowings 35,080 35,455
Interest 21 47
Total current borrowings 35,101 35,502



Contractual terms agreed on borrowings

EUR thousand Long-term portion 31 Dec 2012 Short-term portion 31 Dec 2012 Interest rate agreed Last payment due Collateral
Non-current financial liabilities to banks 92,104 35,080 3 m EURIBOR + 1.900 % 2014 blank bills of exchange
3 m EURIBOR + 2.100 % 2014 blank bills of exchange
3 m EURIBOR + 2.900 % 2014 blank bills of exchange
6 m EURIBOR – 0.025 % 2017 bank guarantee
3 m EURIBOR + 0.083 % 2017 none
3 m EURIBOR – 0.018 % 2017 bank guarantee
3 m EURIBOR + 0.105 % 2017 none

All borrowings from foreign banks are denominated in euro (EUR). One portion of these borrowings bears a variable interest rate. For the remainder, the variable interest rate was replaced by a fixed interest rate, by means of financial derivatives obtained for this purpose.

Banks that have approved long-term loans require that certain debt covenants specified in the loan agreements be maintained, including: consolidated total debt, consolidated net tangible worth, EBITDA, consolidated total debt/EBITDA. Failure to achieve these covenants may result in a demand for early repayment of these borrowings. As at 31 December 2012, the Company was in compliance with all of its debt covenants.