6 - Vicat

10 10.3.Cash flow and equityINDEBTEDNESSand at a variable rate for the other half (basis Euribor3 month rate). The remaining amounts from this conversionare currently € 106 million at a fixed rate and€ 106 million at a variable rate.A second loan of the same type was put in place inDecember 2010 for total amounts of US $ 450 millionand € 60 million, available on December 21,2010 at an amount of US $ 370 million (US $ 80 millionover 7 years, US $ 180 million over 10 years andUS $ 110 million over 12 years) and on January 11,2011 at an amount of US $ 80 million and € 60 million(US $ 20 million and € 60 million over 7 years,US $ 50 million over 10 years and US $ 10 million over12 years). The Dollar debt was converted by meansof cross currency swaps to a fixed-rate Euro debtin order to eliminate the exchange rate risk. Theamounts in US Dollar converted corresponded to€ 339 million (€ 279 million on December 21, 2010and € 60 million January 11, 2011). The part of thedebt in Euro (€ 60 million) is also at a fixed rate.10.3.1.2. Vicat SA bank linesSyndicated loanThis line of credit with a 3 year term, at a variablerate, was placed by the Company with a syndicate of12 international banks and matures in July 2012. Thisline can be drawn down in Euros or other currenciesand interest is payable at the rate for the drawdownperiod for the currency concerned. As at December31, 2010, it was drawn down at the amount of € 220million and partly used (€ 25 million) to hedge theliquidity risk of commercial paper.Bank Bilateral LinesVicat SA’s bilateral lines of credit for an amount of€ 240 million and a term of 5 years were renewed bythe Company in 2009 with six banks. Interest is payableat the rate for the drawdown period. As at December31, 2010, they were drawn down at an amount of€ 113 million and were partly used (€ 127 million) tohedge the liquidity risk of commercial paper.A bridge bank line of credit was put in place inthe form of a club deal in June 2010 for a term of12 months renewable for a term of 6 months and anamount of € 360 million. As at December 31, 2010, ithas been reduced to € 80 million and is used in full.Commercial papersThe Company has a commercial paper issue programamounting to € 152 million. As at December 31,2010, the commercial papers issued amounted to€ 152 million. Commercial papers which constituteshort term credit instruments are backed by the linesof credit confirmed for the issued amount and aretreated as such in medium-term debts in the consolidatedbalance sheet.10.3.1.3. Subsidiaries Bank Bilateral LinesSenegalThe medium-term bilateral lines taken out by SococimIndustries were on the one hand in the form of a bankloan of FCFA 20 billion at a fixed rate payable annuallyat year-end, with a term of 5 years and repayablein fine, and on the other hand, in the form of a loanof € 20 million, of which only € 14.3 million remainedas at December 31, 2010. This loan, at a Euriborvariable rate and with a term of 6 years, is repayablein 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) for a term of 18 months. As atDecember 31, 2010, they were drawn down at a totalamount of FCFA 6.5 billion. The interest rate thatapplies to each drawdown is jointly determined withthe bank up to a maximum cap determined for theterm of the line.MaliCiment et Matériaux du Mali subscribed in 2007 toa bilateral line of credit at a fixed rate redeemableover 5 years as from 2008. At the end of 2010, thishad been drawn to the extent of FCFA 200 million.EgyptSinaï Cement Company subscribed to a line of financingunder a club deal for EGP 550 million includinga loan of EGP 250 million for a term of 6 years at afixed rate of interest, the drawdown period of whichexpired on December 6, 2008, and a 5-year revolvingline of credit at variable rate amounting to EGP300 million. As at December 31, 2008, because theloan had not been used, the authorized amount outstandingwas brought back to the amount of the lineof credit, i.e. EGP 300 million. As at December 31,2010, the line of credit was not drawn down.United StatesTwo bank lines at a Libor Dollar variable rate, maturingin 2011 and 2012, have been in place since 2010,each for an amount of $ 5 million. As at December31, 2010, they were not used.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 US $ 50 million redeemable over 7 years86 VICAT 2010 registration document