+1 - Solvay

Managing interest rate risk
Interest rate risk is managed at Group level. At December 31, around EUR 1 400 million of the Group’s debt
was fixed-rate.
• The Group has fixed the interest rates of its bond loans (EUR 300 million maturing 2018, EUR 500 million
maturing 2014);
• the hybrid subordinated issue placed on the market in 2006 (EUR 500 million maturing 2104) carries a fixed
coupon until 2016 and floating thereafter;
• the financing of SolVin, which amounts to EUR 130 million until 2008 and 120 million from 2008 to 2012,
carries a fixed rate in respect of EUR 90 million until 2008 (Group share 75 %).
Interest rate exposure by currency is summarized below:
102
EUR Million At 31 December 2006 At 31 December 2007
Currency
Fixed rate
Floating
rate Total Fixed rate
Floating
rate
Financial debt
EUR -1 402 -172 -1 574 -1 368 -303 -1 671
USD -5 -15 -20 -3 -6 -9
GBP 0 -2 -2 0 -3 -3
BRL 0 -4 -4 0 -47 -47
Other 0 -91 -91 0 -152 -152
Total -1 407 -284 -1 691 -1 371 -511 -1 882
Cash and cash equivalents
EUR 0 77 77 0 166 166
USD 0 178 178 0 184 184
Other 0 178 178 0 225 225
Total 0 433 433 0 575 575
Total
For the sensitivity analysis, an increase (decrease) of the average interest rate for the reporting period is applied
to the floating rate debt. All other variables being constant, a 1 % higher (lower) interest rate would translate into
EUR 6 million higher (lower) borrowing charges in 2007 (EUR 7 million in 2006).
This impact would have been partially offset by a higher (lower) interest rate on cash and cash equivalents of
EUR 5 million (EUR 6 million in 2006).
Solvay Global Annual Report 2007