100
Notes to the consolidated financial statements continued
21 Loans and credit facilities
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Ahold
Annual Report 2011
Groupata glance
Performance
Governance
Investors
The notes in the table below were issued by Ahold or one of its subsidiaries, the latter of which are guaranteed by Ahold unless otherwise
noted. All related swap contracts have the same maturity as the underlying debt unless otherwise noted.
Non-current portion
million
Current
portion
Within Between After
1 year 1 to 5 years 5 years
Tota
January 1
2012
Current
portion
Within Between
1 year 1 to 5 years
Non-current portion
Tota
After January 2,
5 years 2011
Notional redemption amounts
EUR 600 notes 5.875%,
due March 20121
407
407
407
407
GBP 500 notes 6.50%,
due March 20172,3
280
280
268
268
USD 94 indebtedness 7.82%,
due January 20204
5
27
22
54
4
24
29
57
USD 71 indebtedness 8.62%,
due January 2025
55
55
53
53
USD 500 notes 6.875%,
due May 2029
386
386
374
374
JPY 33,000 notes LIBOR plus
1.5%, due May 20315
331
331
304
304
Deferred financing costs
(2)
(2)
(4)
(1)
(3)
(4)
Total notes
412
25
1,072
1,509
4
430
1,025
1,459
Other loans
1
2
3
1
1
2
Financing obligations6
13
65
321
399
11
60
329
400
Mortgages payable7
3
4
7
3
6
9
Total loans
429
96
1,393
1,918
19
497
1,354
1,870
1 Notes were swapped to the U.S. dollar at an interest rate of 6.835 percent. During 2005, Ahold bought back a part of the notes with a principal amount of €193 million and
terminated a notional portion of the corresponding swap in the same amount.
2 During 2005 Ahold bought back GBP 250 million of the notes. The remaining notional redemption amount of GBP 250 million (€300 million) has been reduced by €20 million
(2010: €24 million) representing an unamortized adjustment related to a fair value hedge that no longer meets the criteria for hedge accounting.
3 The remaining notional amount of GBP 250 million was, through two swap contracts, swapped to $356 million and carries a six-month floating U.S. dollar interest rate
(see Note 30 for additional information). Ahold is required under these swap contracts to redeem the U.S. dollar notional amount through semi-annual installments that
commenced in September 2004. $205 million has been paid down as of January 12012.
4 As of January 12012, $25 million was repaid since inception.
5 Notes were swapped to €299 million at an interest rate of 7.065 percent (see Note 30 for additional information related to the JPY swap).
6 The average interest rate for the financing obligations amounted to 7.9 percent in 2011 (2010: 7.9 percent).
7 Mortgages payable are collateralized by buildings and land. The average interest rate for these mortgages payable amounted to 7.4 percent in 2011 (2010: 7.5 percent).
The fair values of financial instruments, corresponding derivatives, and the foreign exchange and interest rate risk management policies
applied by Ahold are disclosed in Note 30.
The Company has a Euro Medium Term Note (EMTN) program that had an aggregate of €1,018 million of outstanding notes as of
January 1, 2012. The notes issued under the program include the remaining outstanding balances of €600 million, GBP 500 million, and
JPY 33,000 million notes, maturing in 2012, 2017, and 2031, respectively. The notes issued under the EMTN program contain customary
restrictive covenants. During 2011Ahold was in compliance with these covenants.
