Note 26
Other loans
Carrying amounts
Between
Within
one and
After
December 31, January 1,
Notional redemption amounts
one year
five years
five years
2006 2006
EUR-denominated loans and notes
100 EURIBOR loan1, due March 2012
95 note 5.625%, due December 2008
75 EURIBOR facility1, due June 2010
66 note three months EURIBOR plus 0.8%, due October 2007
50 loan six months EURIBOR plus 0.4%, due June 2007
Other loans (EUR- and USD-denominated)
Total
1 The loan and facility relate to Schuitema and are not guaranteed by Ahold.
15
66
50
2
62
95
75
85
95
75
66
50
12
100
95
45
66
50
16
133
233
17
383
372
EUR 85 EURIBOR loan was swapped with two swaps
having fixed rates of 2.71 percent and 2.94375 percent.
EUR 75 has been drawn on the EUR 75 EURIBOR facility.
Drawings under this facility are swapped to a fixed rate of
2.609 percent for EUR 35 and capped to 3.25 percent for
EUR 18, both amounts amortized linearly until maturity.
The three and six months EURIBOR rates as of December
29, 2006 were 3.725 percent and 3.853 percent,
respectively. The six months JPY LIBOR rate as of
December 29, 2006 was 0.63063 percent.
Financing obligations
Financing obligations result from sale and leaseback
transactions in which Ahold has continuing involvement in
the properties sold or subleases the property to a third-party
(including franchisees). Such transactions do not qualify for
sale and leaseback accounting, but rather are accounted
for as a financing. The sale proceeds are recorded as
financing obligations and are amortized over the term of
the leaseback.
Of the total non-current amount, EUR 60 matures between
one and five years and EUR 416 after five years. The average
interest rate for the financing obligations amounted to
10.8 percent in 2006 (2005: 10.1 percent).
Mortgages payable
As of December 31, 2006, the aggregate amounts of
mortgages payable that were collateralized by buildings and
land amounted to EUR 20 (January 1, 2006: EUR 37).
Of the total non-current amount, EUR 10 matures between
one and five years and EUR 8 after five years. The average
interest rate for these mortgages payable amounted to
7.91 percent in 2006 (2005: 7.23 percent).
Group credit facility
On May 17, 2005, Ahold signed a five-year EUR 2,000
unsecured syndicated multi-currency credit facility (the
"May 2005 Credit Facility") with a syndicate of 15 banks,
replacing the December 2003 credit facility. The May 2005
Credit Facility may be used to draw loans for working capital
and for general corporate purposes of the Ahold group and
provides for the issuance of USD 800 of letters of credit.
As of December 31, 2006, there were no outstanding loans
under the May 2005 Credit Facility other than letters of
credit amounting to USD 337.
Interest rate and fees
Under the May 2005 Credit Facility, Ahold is able to borrow
at an interest rate of LIBOR (for borrowings denominated in
USD excluding letters of credit issued under the USD 800
letter of credit tranche) or EURIBOR (for borrowings
denominated in EUR) plus a margin. Ahold is required to
pay a fee (applicable letter of credit fee +10 basis points) on
the outstanding amount of each letter of credit issued under
the USD 800 letter of credit tranche. Ahold has to pay a
commitment fee on the undrawn, uncancelled amount of
the May 2005 Credit Facility computed per annum
calculated on a daily basis in arrears.
Ahold Annual Report 2006 101
