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19. Loans and borrowings

 31 December 201631 December 2015
 Non-currentCurrentTotalNon-currentCurrentTotal
Bonds2,6606033,2633,243823,325
Bank loans and borrowings2385829627851329
Related parties loans and borrowings (Note 32)-1,6641,664-2,9832,983
Other loans and borrowings334679---
 2,9312,3715,3023,5213,1166,637

Bonds

Below are the bonded loans in place and listed on the Luxembourg Stock Exchange:

Year of issueMaturityCurrencyOutstanding nominal amount (mil.) Annual coupon  Type of offer
200320185005,750%(1)European institutional
200520255004,875% European institutional
20092019GBP3198,000%(2) (3)European institutional
200920225555,250%(3)European institutional
201220175214,375%(3)European institutional
201320217394,500%(3)European institutional

(1) Rate derivative transactions were made on these bonds and led the effective cost of the loan to a fixed rate better than the coupon and corresponding to an average of some 5.6%.
(2)The proceeds of the issue were translated into euros and the exchange-rate risk arising from the transaction was fully hedged.
(3) Nominal amounts decreased compared to the value of the original issues following the buy-back transactions.

The main clauses that regulate the Group’s payables are reported in the section “Financial Transactions” of the Report on Operations. Changes in loans and borrowings are as follows:

 1 January 2016IssuesRepayments/Payment of couponsEffect from mergers/demergersOther net increase/(decrease)Exchange differences and other movements31 December 2016
Bonds3,325-(173)-173(62)3,263
Bank loans and borrowings329-(48)59(44)-296
Related-parties loans and borrowings2,983--(1,048)(271)-1,664
Other loans and borrowings---93(14)-79
 6,637- (221)(896)(156)(62)5,302

 1 January 2015IssuesRepayments/Payment of couponsEffect from mergers/demergersOther net increase/ (decrease)Exchange differences and other movements31 December 2015
Bonds2,130-(655)-1,813373,325
Bank loans and borrowings374-(45)---329
Related-parties loans and borrowings4,523---(1,540)-2,983
Other loans and borrowings-------
 7,027- (700)- 273376,637

Bank loans and borrowings

The item mainly includes the 12-year loan signed with the European Investment Bank (EIB) in 2009 (€mil. 280 at 31 December 2016 compared to €mil. 327 at 31 December 2015) to finance development in the Aeronautics segment. As provided in the loan agreement, €mil. 300 of the loan was originally used at a fixed rate of 3.45% and for €mil. 200 at a floating rate equal to the 6-month Euribor plus a margin of 79.4 basis points. The fixed-rate tranche is repaid in 11 annual instalments with a fixed principal repayment component, while the floating-rate tranche is repaid in 21 6-month instalments, also with a fixed principal repayment component. During the year €mil. 47 was repaid, as in 2015.

Related-party loans and borrowings

Loans and borrowings decrease as a result of the write-off of the Parent Company’s payables to the companies and business units merged. 

Other borrowings

The item includes the residual balance of subsidised loans, related to programmes and projects of the companies and business units merged.

Exposure to changes in interest rates of the financial liabilities is as follows:

31 December 2016

 BondsBank loans and borrowingsRelated-party loans and borrowingsOther loans and borrowingsTotal
floatingfixedfloatingfixedfloatingfixedfloatingfixedfloatingfixed
Within 1 year-60328301,664-46-1,738633
2 to 5 years-1,60882109--2811101,718
Beyond 5 years-1,0522027--4-241,079
Total- 3,2631301661,664- 7811,8723,430

31 December 2015

 BondsBank loans and borrowingsRelated-partiy loans and borrowingsOther loans and borrowingsTotale
floatingfixedfloatingfixedfloatingfixedfloatingfixedfloatingfixed
Within 1 year-8221302,983---3,004112
2 to 5 years-1,45376109----761,562
Beyond 5 years-1,7903855----381,845
Total- 3,3251351942,983- - - 3,1183,519

Below is the financial information required under CONSOB communication DEM/6064293 of 28 July 2006:

 31 December 2016Of which with
related parties
31 December 2015Of which with
related parties
Liquidity (1,747) (1,365) 
     
Current loans and receivables(353)(326)(2,558)(2,558)
     
Current bank loans and borrowings58 51 
Current portion of non-current loans and borrowings603 82 
Other current loans and borrowings1,7101,6642,9832,983
Current financial debt2,371 3,116 
     
Net current financial debt (funds)271 (807) 
     
Non-current bank loans and borrowings238 278 
Bonds issued2,660 3,243 
Other non-current loans and borrowings33 - 
Non-current financial debt2,931 3,521 
     
Net financial debt3,202 2,714 
     

The reconciliation between Net Financial Debt and Group Net Debt, used as KPI, is as follows:

 Note31 December 201631 December 2015
Net financial debt com. CONSOB no. DEM/6064293 3,2022,714
Fair value of the residual portion in portfolio of Ansaldo Energia15(138)(131)
Hedging derivatives in respect of debt items153513
Non current financial receivables from Group's consolidated entities32(15)-
Non current financial receivables from Superjet10(65)-
Net debt (KPI) 3,0192,596

The main clauses that regulate the Leonardo’s payables are reported in the section “Industrial and financial transactions” of the Report on Operations.