NOTE 19. Borrowings and debt

L’Oréal obtains financing through medium-term bond loans and issues short-term marketable instruments in France and the United States. The amounts of the programmes are €5,000 million and $5,000 million respectively. 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 undrawn short-term credit facilities with banks, which amounted to €5,000 million at 31 December 2022,compared to €5,000 million at 31 December 2021 and €5,363 million at 31 December 2020.

In March 2022, the Group completed a bond issue in the total amount of €3 billion. It is composed of three tranches. A first floating rate tranche with a maturity of 2 years in the amount of €750 million. A second fixed rate tranche with the same maturity in the amount of €1,000 million, with a coupon of 0.375% per annum. A third fixed rate tranche with a maturity of 4 years 3 months in the amount of €1,250 million, with a coupon of 0.875% per annum, known as a sustainability linked bond.

All borrowings and debt are denominated in euros and can be broken down as follows:

Breakdown by type of debt
€ millions 31.12.2022 31.12.2021 31.12.2020
Bonds(1) 3,014.5 - -
Short-term marketable instruments(2) 795.2 2,507.0 360.0
Bank overdrafts and financing with the Group’s cash pool - - -
Other borrowings and debt(3) 62.4 2,439.5 9.3
TOTAL 3,872.1 4,946.50 369.3

(1) The issue premium of €3.4 million is directly linked to the amount of this bond.To finance the repurchase in 2021 of its own shares from Nestlé, the Group:

(2) issued commercial paper (€2,300 million); and

(3) took out a bridging loan (€1,904 million).

Breakdown by maturity date
€ millions 31.12.2022 31.12.2021 31.12.2020
Less than 1 year 866.8 4,939.8 361.7
1 to 5 years 3,005.3 6.7 7.6
More than 5 years - - -
TOTAL 3,872.1 4,946.5 369.3
Average interest rate on borrowings and debt

As was the case in previous years, drawdowns of short-term marketable instruments denominated in euros were made on the basis of negative rates in 2022.

Thus for 2022, the average rate of the debt in euros was +0.26% including bonds, compared to -0.51% in 2021 and -0.31% in 2020,and the average rate of short-term marketable instruments in dollars in the United States stands at 2.18%.

NOTE 20. Maturity of payables

€ millions 1 year or less More than 1 year Total
Trade accounts payable 1,201.8 - 1,201.8
Other current liabilities, of which 1,050.8 0.4 1,051.2
Tax and employee-related payables 550.1 - 550.1
Payables related to non-current assets(1) 197.4 0.4 197.8
Other payables 303.3 - 303.3

(1) Long-term payables correspond to the earn-out clause on the Sayuki acquisition.

Accrual accounts included in trade accounts payable and other current liabilities are as follows:

€ millions 31.12.2022 31.12.2021 31.12.2020
Trade accounts payable 662.4 542.4 482.0
Payables related to non-current assets 162.6 168.1 230.2
Tax and employee-related payables, of which 498.7 486.9 442.4
Provision for employee Profit Sharing 31.7 29.2 28.5
Provision for incentives 143.8 135.2 122.1
Other payables 210.2 199.9 179.6
TOTAL 1,546.3 1,397.3 1,334.2

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