Note 26
EUR-denominated bonds and notes
Other-currencies denominated loans
Other loans
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On October 24, 2005 Ahold Finance USA and Ahold closed their successful solicitations of offers to sell for cash for the
amount of up to EUR 1,000 equivalent in principal amount of certain of the notes issued by them (the "October 2005
Solicitation"), under the terms as set out in the Solicitation Memorandum dated October 11, 2005.
EUR 1,500 notes 6.375%, were swapped to USD 1,415 at an interest rate of 8.547%.
EUR 1,500 notes 5.875%, of which EUR 600 was swapped to a six month floating interest rate. The carrying amount
of these notes includes fair value changes related to the hedged risk in an amount of EUR 27 as of January 1, 2006
(January 2, 2005: EUR 61). As a result of the October 2005 Solicitation, Ahold bought back a part of the notes in an
amount of EUR 437.
EUR 600 notes 5.875%, were swapped to USD 534 at an interest rate of 6.835%. As a result of the October 2005
Solicitation, Ahold bought back a part of the notes in an amount of EUR 193 and on the same day Ahold terminated
EUR 193 notional portion of the corresponding swap.
EUR 227 bond 6.25% was swapped to USD 296 at an interest rate of 7.152%.
A notional amount of GBP 250 of the GBP 500 notes 6.50% was swapped through two swap contracts to USD 356 that
carries an interest rate of 7.493%. As a result of the October 2005 Solicitation, Ahold bought back GBP 250 of the notes
and simultaneously terminated the above-mentioned swaps. The remaining notional amount of GBP 250 was, through two
swap contracts, also swapped to USD 356 and carries a six-month floating USD interest rate. Ahold was required under
these swap contracts to redeem the USD notional amount through semi-annual installments that commenced in September
2004. Initially the swaps entered to hedge the foreign currency and interest rate risk on the notes were accounted for under
fair value hedge accounting principles. In 2004, the two swap contracts have failed the hedge effectiveness test and hedge
accounting was discontinued.
JPY 33,000 notes, 6 months JPY LIBOR 1.5%, notes were swapped to EUR 299 at an interest rate of 7.065%.
Carrying amounts
NOTIONAL REDEMPTION AMOUNTS
Between
1 and
5 years
After
5 years
January 1,
2006
January 2,
2005
EUR-denominated loans and notes
135 loan 1 2.7375%, early redeemed in 2005
135
100 EURIBOR loan L due March 2012
15
62
23
100
95 note 5.625%, due December 2008
95
95
95
75 EURIBOR facility due June 2010
45
45
66 note 3 months EURIBOR plus 0.8%, due October 2007
66
66
66
50 note 6 months EURIBOR plus 0.4%, due June 2007
50
50
50
Other loans (EUR- and USD-denominated)
2
4
10
16
49
Total
17
322
33
372
395
1 These loans and facility relate to Schuitema and are not guaranteed by Ahold.
EUR 100 EURIBOR loan was swapped with two swaps having fixed rates of 2.71% and 2.94375%.
EUR 45 has been drawn on the EUR 75 EURIBOR facility. Drawings under this facility are swapped to a fixed
rate of 2.609% for EUR 50 and capped to 3.25% for EUR 25, both amounts amortized linearly until maturity.
The three and six months EURIBOR rates as of December 30, 2005 were 2.49% and 2.64%, respectively. The six months
JPY LIBOR rate as of December 30, 2005 was 0.08313%.
AHOLD ANNUAL REPORT 2005 153
