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19. Loans and Borrowings

 31 December 201631 December 2015
 Non-currentCurrentTotalNon-currentCurrentTotal
Bonds3,7376384,3754,2761214,397
Bank loans and borrowings2385929729396389
Related party loans and borrowings (Note 34)-5025022399401
Other loans and borrowings36681043683119
 4,0111,2675,2784,6076995,306

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 couponsOther net increase (decrease)Exchange differences and other movements31 December 2016
Bonds4,397-(243)246(25)4,375
Bank loans and borrowings389-(59)(33)-297
Related-party loans and borrowings401--101-502
Other loans and borrowings119-(14)1(2)104
 5,306-(316)315(27)5,278

 1 January 2015IssuesRepayments/Payment of couponsOther net increase (decrease)Exchange differences and other movements31 December 2015
Bonds4,761-(793)2711584,397
Bank loans and borrowings472-(79)3(7)389
Related-party loans and borrowings431--(30)-401
Other loans and borrowings106-(5)27(9)119
 5,770-(877)2711425,306

Net changes for current liabilities. The items also include changes resulting from the application of the effective interest-rate method, which may not correspond with actual cash movements.

Bank loans and borrowings mainly included the loan executed with the European Investment Bank (EIB) (€mil. 280 compared to €mil. 327 at 31 December 2015), aimed at implementing development activities in the aeronautic segment.

Bonds

Below is the detail of the bonds at 31 December 2016 which shows the bonds issued by Leonardo (“LDO”) and Meccanica Holdings USA (“MH”):

Issuer Year of issueMaturityCurrencyOutstanding nominal amount (mil.) (*)Annual couponType of offer
LDO (originally Fin Fin)(**)200320185005.750%(1)European institutional
LDO(**)200520255004.875% European institutional
LDO (originally Fin Fin)(**)20092019GBP3198.000%(2)European institutional
LDO (originally Fin Fin)(**)200920225555.250% European institutional
MH(***)20092019USD4346.250% American institutional Rule 144A/Reg. S
MH(***)20092039USD2757.375% American institutional Rule 144A/Reg. S
MH(***)20092040USD4576.250% American institutional Rule 144A/Reg. S
LDO (originally Fin Fin)(**)201220175214.375% European institutional
LDO (originally Fin Fin)(**)201320217394.500% European institutional

(*) Nominal amounts decreased compared to the value of the original issues following the buy-back transactions
(**) 
Bonds listed on the Luxembourg Stock Exchange and issued as part of the EMTN programme for a maximum of €bil. 4. The transaction was authorised pursuant to Art. 129 of Legislative Decree 385/1993.
(***)
 Bonds issued under Rule 144A, Regulation S of the US Securities Act. The proceeds of this issue were entirely used by Meccanica Holdings USA to finance the purchase of the subsidiary DRS replacing the dollar-issue bonds originally issued by the company. These bonds were redeemed early following Leonardo’s purchase of DRS. As a result, these issues were not hedged against exchange rate risk, and no interest-rate transactions on the issue were performed.

(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.

Movements in bonds are as follows:

 1 January 2016New borrowingsInterestRepayments/RepurchasesPayments of couponsEffect of exchange rate31 December 2016Fair value
€mil. 500 LDO 2018 *500 30 (29) 501500
€mil. 500 LDO 2025 *516 25 (25) 516500
GBPmil. 400 LDO 2019 *434 34(2)(35)(62)369372
€mil. 600 Fin Fin 2022 *579 29 (27) 581556
USDmil. 500 MH 2019 *408 26 (25)13422412
USDmil. 300 MH 2039 *255 18 (18)9264261
USDmil. 500 MH 2040 *426 25 (27)15439433
€mil. 600 LDO 2017 *519 24 (22) 521521
€mil. 950 Fin Fin 2021 *760 35 (33)-762739
 4,397-246(2)(241)(25)4,3754,294

 1 January 2015New borrowingsInterestRepayments/RepurchasesPayments of couponsEffect of exchange rate31 December 2015Fair value
€mil. 500 LDO 2018 *500 29 (29) 500561
€mil. 500 LDO 2025 *515 25 (24) 516557
GBPmil. 400 LDO 2019 *511 44(117)(41)37434509
€mil. 600 Fin Fin 2022 *624 32(45)(32) 579631
USDmil. 500 MH 2019 *365 24 (24)43408383
USDmil. 300 MH 2039 *250 20(24)(20)29255269
USDmil. 500 MH 2040 *419 27(41)(28)49426457
€mil. 600 LDO 2017 *596 27(79)(25) 519553
€mil. 950 Fin Fin 2021 *981 43(211)(53)-760806
 4,761-271(517)(276)1584,3974,726

(*) Maturity date of bond.

The fair value of the bonds was determined on the basis of the quoted prices of the existing issues (Level 1 of the fair value hierarchy).

The Group’s financial liabilities are subject to the following exposures to interest-rate risk:

31 December 2016

 BondsBank loans and borrowingsRelated party loans and borrowingsOther loans and borrowingsTotal
FloatingFixedFloatingFixedFloatingFixedFloatingFixedFloatingFixed
Within 1 year-6382930502-68-599668
2 to 5 years 2,02382109 -3111132,133
Beyond 5 years-1,7142027--4-241,741
Total-4,375131166502-10317364,542

31 December 2015

 BondsBank loans and borrowingsRelated party loans and borrowingsOther loans and borrowingsTotale
FloatingFixedFloatingFixedFloatingFixedFloatingFixedFloatingFixed
Within 1 year-1216630399-83 548151
2 to 5 years 1,8451051092-2911361,955
Beyond 5 years-2,4312455--6-302,486
Total-4,397195194401-11817144,592

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

 31 December 2016Of which with related parties31 December 2015Of which with related parties
Cash and cash equivalents(2,167) (1,771) 
Securities held for trading- - 
Liquidity(2,167) (1,771) 
     
Current loans and receivables(98)(40)(167)(122)
     
Current bank loans and borrowings59 96 
Current portion of non-current loans and borrowings638 121 
Other current loans and borrowings570502482399
Current financial debt1,267 699 
     
Net current financial debt (funds)(998) (1,239) 
     
Non-current bank loans and borrowings238 293 
Bonds issued3,737 4,276 
Other non-current loans and borrowings36-382
Non-current financial debt4,011 4,607 
     
Net financial debt3,013 3,368 

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

 Notes31 December 201631 December 2015
Net financial debt com. CONSOB n. DEM/6064293 3,0133,368
Fair value of the residual portion in portfolio of Ansaldo Energia16(138)(131)
Hedging derivatives in respect of debt items163541
Non current financial receivables from Superjet12(65)-
Group net debt (KPI) 2,8453,278