Note 31 - Borrowing

Since the outstanding loan facility expires in November 2012, the facility is classified as short-term. However, periodic maturity/rolling of drawn loans takes place regularly. The average rate of interest on bank loans was 1.66% per year (2010:0.9% per year). A procedure has commenced to negotiate a new loan facility and the intention is to have a new long-term facility in place in due time prior to the expiration of the old one.

With respect to borrowing, Duni's exposure on the balance sheet date to changes in interest rates and contractual dates for interest renegotiation was as follows:

Duni's borrowing is valued at the accrued acquisition value applying the effective annual interest rate method. The difference between the values reported in the balance sheets for Dec 31, 2011 and the nominal values consists of transaction costs.

Duni's accrued interest is reported as accrued expenses. Shown below are the nominal values excluding accrued interest and reported values for Duni’s borrowing.

Fair values

Current financing

Duni's long-term bank loans and overdraft facility, amounting to SEK 661 m (2010: SEK 530 m) carry variable interest which is determined in conjunction with each loan period; the discount effect for such a relatively short period of time is insignificant and thus the fair value corresponds to the nominal value plus accrued interest.

Reported amounts, per currency, for the Group's borrowing are as follows:

Bank loans

Duni has a multicurrency credit facility of a nominal EUR 220 m, which entitles Duni to borrow in the currency of its choice. This facility extends until November 2012. The interest rate is variable and is set as EURIBOR, STIBOR or another IBOR for the period until the next rolling, plus a margin.

Overdraft facility 

On behalf of the Group, the Parent Company has taken out an overdraft facility in a nominal amount of SEK 125 m. As per December 31, 2011, the sum utilized was SEK 26 m.