15 Borrowings

In CHF million  30.06.200931.12.2008
Money market instruments  1327
Hybrid debt  2 6872 677
Convertible debt  4140
Bank loans  384377
Finance lease obligations  32
Total borrowings  3 1283 123


Hybrid DebT | In the first half of 2009, hybrid debt was repurchased. The gain on the repurchase amounted to CHF 35 million and is included in other income.

Convertible Debt | On 10 June 2004, Swiss Life Holding issued CHF 317 million in 0.625% convertible bonds due in 2010. The bonds may be converted into registered shares of Swiss Life Holding at any time at the option of the holder. Bondholders exercising their conversion right are entitled to receive the number of shares equal to the principal amount of CHF 1000, divided by the original conversion price of CHF 209.625 (subject to adjustments, conversion price of CHF 200.20 effective from 29 July 2008).

Swiss Life Holding has the option of redeeming all outstanding bonds at their principal amount (together with unpaid accrued interest) at any time on or after 25 June 2007, provided that the closing price of the Swiss Life Holding share is at least 130% of the conversion price for 20 consecutive trading days. The early redemption at the option of Swiss Life Holding is subject to a period of 30 days’ notice to the bondholders.

In the first half of 2009, no convertible bonds were converted into Swiss Life Holding shares (2008: 124 115 Swiss Life Holding shares with a corresponding increase in share capital totalling CHF 3 million and an increase in share premium of CHF 20 million).

Other Debentures | On 30 June 2008, EUR 300 million in 4.375% bonds matured and were repaid.

Bank loans | On 25 July 2008, Swiss Life Insurance Finance Ltd entered into a EUR 500 million loan agreement with a syndicate of banks. The syndicated loan has a three-year maturity and is split into a EUR 200 million fully drawn loan bearing an interest rate of Euribor plus a margin of 0.70% and a EUR 300 million undrawn credit facility against a commitment fee of 0.225% p.a.

 
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