L'Oréal - 2018 Registration Document

5 Parent company financial statements

NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS

Borrowings and debt NOTE 19

L’Oréal obtains financing through medium-term bank loans and issues short-term marketable instruments in France. The amount of the programme is €4,000 million. None of the Group’s borrowings or debt contains an early repayment clause linked to financial ratios (covenants). Liquidity on the short-term marketable instruments issues is provided by confirmed short-term credit facilities with banks,

which amounted to €3,644 million at 31 December 2018, €3,675 million at 31 December 2017 and €3,727 million at 31 December 2016. All borrowings and debt are denominated in euros and can be broken down as follows:

BREAKDOWN BY TYPE OF DEBT

31.12.2018

31.12.2017 31.12.2016

€ millions

Bonds

-

-

- -

Short-term marketable instruments

200.0

200.0

Bank overdrafts and financing with the Group’s cash pool

-

-

154.5

Other borrowings and debt

9.6

11.6

14.5

TOTAL

209.6

211.6

169.0

BREAKDOWN BY MATURITY DATE

31.12.2018

31.12.2017 31.12.2016

€ millions

Less than 1 year

200.7

200.5

154.7

1 to 5 years

7.8 1.1

9.9 1.2

13.0

More than 5 years

1.3

TOTAL

209.6

211.6

169.0

EFFECTIVE INTEREST RATE AND AVERAGE INTEREST RATE ON BORROWINGS AND DEBT

The fall in euro interest rates is now reflected by drawdowns of short-term marketable instruments with negative interest rates. The average interest rate on short-term marketable instruments denominated in euros was -0.45% in 2018, compared with -0.42% in 2017 and -0.33% in 2016.

REGISTRATION DOCUMENT / L'ORÉAL 2018

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