Creditor Relations
As a high rated borrower Henkel is able to raise funds by all available options. Bonds serve for long-term financial sourcing. The short- to medium-term need is covered by commercial paper. Bank loans are basically used in countries in which a central financing of affiliated companies is restricted or unfavorable, e.g. because of tax issues.
The following table shows the different funding sources available to Henkel, as well as their used and total volume.
| Funding sources | Used sources September 30, 2011 |
Total sources |
| Bank lines | € 0.0 bn | € 0.4 bn |
| Back-up credit facility (back-up for commercial paper program) |
€ 0.1 bn (commercial paper) |
€ 2.1 bn |
| Debt issuance program (framework for issuing bonds) |
€2.1 bn (Senior Bond 2003, Senior Bond 2009, Floating-Rate Note 2009) |
€ 6.0 bn |
Bank Policy Statement
As banks are strategic business partners for Henkel, the allocation of bank business follows a structured approach. Corporate Finance at Henkel AG & Co KGaA coordinates globally all banking relationships and has the authority to establish guidelines for all relevant processes in that respect. Any external bank transactions have to be effected as far as possible in a fully integrated, automated process, thus ensuring that highest standards of security are being followed.
The following graph shows the development of interest bearing debt.
| in million euros |
2007 |
2008 |
2009 |
2010 |
Q3/2011 |
| Other borrowings |
477 |
518 |
4 |
5 |
4 |
| Bank loans |
404 |
1,132 |
303 |
335 |
179 |
| Bonds |
2,251 |
2,394 |
3,708 |
3,687 |
3,705 |
| Commercial Paper |
10 |
175 |
71 |
79 |
81 |
| Total |
3,142 |
4,219 |
4,086 |
4,106 |
3,969 |
