Interest-bearing debt

Interest-bearing debt was:

At 31 December 2012

At 31 December 2011

Private loans

1,792

1,847

Green and subordinated loans

8

12

Total

1,800

1,859

Classification

At 31 December 2012

At 31 December 2011

Current

74

140

Non-current

1,726

1,719

Total

1,800

1,859

No collateral has been issued for the interest-bearing debt.

The private loans are predominantly loans from institutional investors and banks and included € 224 million in US dollars (2011: € 208 million), € 176 million in Japanese yen (2011: € 200 million) and € 92 million in pounds sterling (2011: € 90 million). The "green fund" loans were borrowed to finance specific sustainable energy infrastructure investments. Investors enjoy tax advantages on green funds and so the interest charges are below the market interest rate. Loans consisted of private loans and issued commercial paper.

The credit facilities are explained in Note 32.

Repayment obligations for the first year after the reporting date are recognised under current liabilities.

Interest rates are fixed on borrowings of € 1,552 million (2011: € 1,572 million) (fair value risk). Variable interest rates that track market rates apply to the other borrowings (cash flow interest rate risk). Derivative financial instruments (interest rate swap contracts) have been used for certain variable interest rates.

The table below shows the average interest rate (excluding capitalised interest) and the fair value of the loans:

2012

2011

Average interest rate1

5.7%

5.6%

Fair value of loans

2,073

1,937

  1. 2011 figures restated for comparative purposes.

The fair value of the loans is estimated using the present value method based on relevant market interest rates.