Shareholders' Letter

Bank loans
Carrying amount
Due Par value
In CHF million within in CHF 31.12.2010 31.12.2009
Bank loans in CHF variable interest-bearing 2011 2,200 – 2,199
Bank loans in CHF variable interest-bearing 2015 685 686 –
Bank loans in EUR variable interest-bearing 2015 438 437 –
Bank loans in USD fixed interest-bearing 2013–2028 276 337 371
Total 1,460 2,570
In 2010, Swisscom took up variable interest-bearing bank loans in CHF and EUR. The nominal
amount of the bank financing taken up in CHF and EUR was CHF 685 million and EUR 350 million
(CHF 438 million), respectively. Through currency swaps, the whole amount of the EUR-denominated
bank loans was exchanged to CHF variable interest financing. In 2010, bank loans amounting
to CHF 2,200 million (prior year: CHF 3,950 million) resulting from refinancing transactions
were repaid prior to maturity. As a result of the early repayment of bank loans, cash flow hedges
relating to hedged items of an aggregate of CHF 1,300 million (prior year: CHF 1,100 million) were
closed out. The cumulative revaluation losses of CHF 34 million (prior year: CHF 96 million) were
taken out of other reserves within equity and recognised as other financial expense in the income
statement. Transaction costs relating to the outstanding bank loans of CHF 1 million (prior year:
CHF 1 million) were recognised as of 31 December 2010. The transaction costs are amortised over
the terms of the bank loans using the effective interest method. The effective interest rate of the
CHF denominated bank loans is 0.79%. For the bank loans in USD and EUR, the rate is 3.82% and
0.51%, respectively. The bank loans may become due for immediate repayment if the shareholding
of the Swiss Confederation in the capital of Swisscom falls below one third or if another shareholder
can exercise control over Swisscom.
Debenture bonds
Carrying amount
In CHF million, except where indicated
Maturity
Years Par value Coupon 31.12.2010 31.12.2009
Debenture bonds in CHF 2007–2010 350 3.25% – 352
Debenture bonds in CHF 2007–2013 550 3.50% 564 565
Debenture bonds in CHF 2007–2017 600 3.75% 611 610
Debenture bonds in CHF 2008–2015 500 4.00% 503 503
Debenture bonds in CHF 2009–2014 1,250 3.50% 1,277 1,276
Debenture bonds in CHF 2009–2018 1,500 3.25% 1,495 1,495
Debenture bonds in CHF 2010–2012 250 0.75% 250 –
Debenture bonds in CHF 2010–2022 500 2.63% 495 –
Total 5,195 4,801
In 2010, Swisscom issued debenture bonds aggregating CHF 750 million. The issue was made in
two tranches with the first tranche of CHF 250 million bearing a coupon rate 0.75% and a term of
two years and the second tranche of CHF 500 million with a coupon rate of 2.625% with a term
of 12 years. In 2010, debenture bonds aggregating CHF 350 million were redeemed upon maturity.
The effective interest rate on debenture bonds is 3.26%. The investors are entitled to sell the debentures
back to Swisscom if a shareholder other than the Swiss Confederation gains a majority share
in Swisscom and at the same time, the Company’s rating falls below BBB–/Baa3.