6 - Vicat

1010.3.CASH FLOW AND EQUITYINDEBTEDNESS10.3.1.1. Private placement USThis loan, amounting to 400 million US dollars wassubscribed by American investors under a privateplacement (PPUS). It consists of three tranches inUS dollars at a fixed rate (one tranche of 160 millionUS dollars for 7 years and two tranches of 120 millionUS dollars for 10 years and 12 years respectively). Toeliminate the exchange rate risk on the principal andthe interest, this was transformed into an overall debtin euros by a cross currency swap at a fixed rate forhalf of its amount i.e. € 177 million and at a variablerate for the other half (Euribor 3 month base rate).10.3.1.2. Vicat SA banking linesSyndicated loan This line of credit with a 3 year term, at a variable rate,was placed with a syndicate of 12 international banksmaturing for repayment in July 2012. This line can bedrawn down in euros or other currencies and interestis payable at the rate for the drawdown period for thecurrency concerned. As at December 31, 2009, it wasdrawn for the amount of € 20 million.Banking Bilateral LinesVicat S.A.’s bilateral lines of credit for an amount of€ 240 million and a term of 5 years were taken outby the Company in 2009 with six banks. Interest ispayable at the rate for the drawdown period. As atDecember 31, 2009, they were not drawn and wereused partially (€ 216 million) for hedging the liquidityrisk of commercial paper and spot bank positions.Commercial papersThe Company has a commercial paper issuance programamounting to € 152 million. As at December31, 2009, the commercial papers issue amounted to€ 136 million. Commercial papers which constituteshort term credit instruments are backed on the linesof credit confirmed for the issued amount and aretrated as such in the medium term debts row of theconsolidated balance sheet.10.3.1.3. Subsidiary Banking Bilateral LinesSenegalThe medium term bilateral lines taken out by SococimIndustries were on the one hand in the form of a bankloan in CFA Francs at a fixed rate payable annually atyear end, with a term of 5 years and repayable in fine,and on the other hand, in the form of a loan in Eurosat a Euribor variable rate and with a term of 6 years,repayable in 7 equal tranches starting in 2010.Sococim Industries also has three confirmed linesof credit (two for FCFA 15 billion each, and onefor FCFA 7 billion line with a validity period of 18months. As at December 31, 2009, they were drawnfor the amount of FCFA 17 billion. The interest ratethat applies to each drawdown is jointly determinedwith the bank up to a maximum cap determined forthe validity period of the line.At the end of 2009, Sodevit and Gecamines obtainedtwo lines of credit for FCFA 250 million and one billionrespectively. As at December 31, 2009, they werenot used.MaliCiment et Matériaux du Mali subscribed in 2007 to abilateral line of credit at a fixed rate redeemable over5 years as from 2008. At the end of 2009, this hadbeen drawn to the extent of FCFA 300 million.EgyptSinai Cement Company subscribed to a bankingline of financing in the framework of a club deal forEGP550 million including a loan of EGP250 millionfor a period of 6 years at a fixed rate of interest, thedrawdown period of which expired at December 6,2008, and a 5-year line of revolving credit at variablerate amounting to EGP300 million. As at December31, 2008, because the loan had not been used, theauthorised amount outstanding was brought backto the amount of the line of credit, i.e. EGP300 million.As at December 31, 2009, the line of credit wasnot drawn.USAIn 2009, NCC renewed its bilateral 5-year lines ofcredit over 2 and 3 years at variable rates based onthe dollar Libor and taken out with four banks for thetotal amount of USD 105 million. As at December 31,2009, they were drawn up to USD 50 million and usedto cover issuing letters of credit.KazakhstanIn 2008, Jambyl Cement took out two lines of creditwith International Finance Corporation, a subsidiaryof the World Bank group, at a dollar floating rate, forrespectively USD 50 million redeemable over 7 yearsas from 2012 and USD110 million redeemable over5 years as from 2011. At 31 December 2009, it wasused to the extent of USD 125 million.TurkeyCozum has a confirmed line of bank credit of 5 millionTurkish lira with maturity in 2010 and totally drawn atthe end of December 2009.88 VICAT - 2009 registration document