g)@
Notes to the Consolidated Financial Statements
11.3 Borrowings
exchange rates
31 December 2020
-
exchange rates
1 Heineken N.V. Report of the Report of the Financial Sustainability Other
Annual Report 2020 Introduction Executive Board Supervisory Board Statements Review Information
HEINEKEN operates in a number of territories where there is limited availability of foreign currency resulting
in restrictions on remittances. Mainly as a result of these restrictions, €373 million (2019: €342 million) of
cash included in cash and cash equivalents is restricted for use by the Company, yet available for use in the
relevant subsidiary's day-to-day operations.
Accounting policies
Cash and cash equivalents are initially recognised at fair value and subsequently at amortised cost.
HEINEKEN has cash pooling arrangements with legally enforceable rights to offset cash and overdraft
balances. Where there is an intention to settle on a net basis, cash and overdraft balances relating to the cash
pooling arrangements are reported on a net basis in the statement of financial position.
HEINEKEN mainly uses bonds, commercial paper and bank loans to ensure sufficient financing to support its
operations. Net interest-bearing debt is the key metric for HEINEKEN to measure its indebtedness.
2020
2019
Non-
In millions of
Note
current
Current
Total
Non-current
Current
Total
Unsecured bond issues
13,242
1,200
14,442
11,774
1,014
12,788
Lease liabilities
936
263
1,199
1,003
255
1,258
Bank loans
374
38
412
462
22
484
Other interest-bearing
64
983
1,047
127
568
695
liabilities
Deposits from third parties1
615
615
693
693
Bank overdrafts
481
481
1,134
1,134
Total borrowings
14,616
3,580
18,196
13,366
3,686
17,052
Market value of
11.5
14
28
cross-currency
interest rate swaps
Cash and cash equivalents
11.2
(4,000)
(1,821)
Net interest-bearing
14,210
15,259
debt position
1 Mainly employee deposits.
As at 31 December 2020, €106 million of the €412 million of bank loans is secured (2019:€103 million).
Other interest-bearing liabilities includes €698 million of centrally issued commercial paper
(2019: €532 million).
In millions of
Unsecured
bond issues
Lease
liabilities
Bank loans
Other
interest-
bearing
liabilities
Deposits
from third
parties
Derivatives
used for
financing
activities
Assets and
liabilities
used for
financing
activities
Balance as at
12,788
1,258
484
695
693
28
15,946
1 January 2020
Consolidation changes
2
(47)
(24)
(69)
Effect of movements in
(314)
(83)
(21)
(63)
(4)
(19)
(504)
Addition of leases
341
341
Proceeds
2,973
290
2,748
21
5
6,037
(Re)payments
(1,016)
(281)
(295)
(2,300)
(90)
(3,982)
Interest paid over lease
(60)
(60)
liability
Other
11
22
1
(9)
(5)
20
Balance as at
14,442
1,199
412
1,047
615
14
17,729
In millions of
Unsecured
bond issues
Lease
liabilities
Bank loans
Other
interest-
bearing
liabilities
Deposits
from third
parties
Derivatives
used for
financing
activities
Assets and
liabilities
used for
financing
activities
Balance as at
13,150
326
177
678
(2)
14,329
1 January 2019
Policy changes
1,252
1,252
Consolidation changes
4
15
8
27
Effect of movements in
97
29
(1)
1
38
164
Addition of leases
268
268
Proceeds
516
335
1,339
98
2,288
(Re)payments
(984)
(259)
(189)
(832)
(105)
(8)
(2,377)
Transfer to liabilities
(4)
(4)
held for sale
Interest paid over lease
(55)
(55)
liability
Other
9
23
(2)
3
21
54
Balance as at
12,788
1,258
484
695
693
28
15,946
31 December 2019
