Solvay
2019 Annual Integrated Report

In € million

 

FY 2019

FY 2018 PF

Cost of borrowings

 

(139)

(147)

Interest on lendings & deposits

 

15

13

Other gains & losses on net indebtedness

 

(4)

(1)

Net cost of borrowings

a

(128)

(134)

Coupons on perpetual hybrid bonds

b

(105)

(112)

Interests and realized foreign exchange gains (losses) on the RusVinyl joint venture

c

(18)

(21)

Cost of discounting provisions

d

(85)

(74)

Result from equity instruments measured at fair value through other comprehensive income

e

4

Net financial charges

f = a+b+c+d+e

(332)

(342)

Underlying net financial charges reduced vs 2018PF mainly following (a) the repayment at maturity, in June 2018, of the EMTN bond (€ 382 million balance with a coupon of 4.625%), and (b) the early repayment in 2019 of the US$ 800 million Senior US$ bonds of Solvay Finance America LLC, with the issuance of a 10-year Senior bond (€ 600 million) with a 0.5% yearly coupon. Solvay also modified the quantum of hybrid financing, calling a €700 million hybrid bond at 4.20% in May 2019, partly pre-financed by a €300 million hybrid bond at 4.25% issued in November 2018. Discounting costs Increased as a result of the applicable discount rates for post-employment provisions.