15 Borrowings

In CHF million  
  30.06.2010 31.12.2009
Money market instruments
Hybrid debt
  2 247 2 487
Convertible debt
Bank loans
  78 184
Finance lease obligations
  3 3
Total borrowings
  2 328 2 731

Hybrid debt

In 2009, hybrid debt was repurchased. The gain on the repurchase for the first six months of 2009, calculated as the difference between the carrying amount and the amount paid to extinguish the liability, amounted to CHF 35 million and is included in other income. In 2009 Swiss Life Ltd renounced the right to call the privately placed subordinated stepup loan, which was issued in 1999, on the first call date.

The change in the first half of 2010 was primarily due to foreign currency gains.

Convertible debt

On 10 June 2004, Swiss Life Holding issued CHF 317 million in 0.625% convertible bonds due in 2010. The bonds were convertible into registered shares of Swiss Life Holding at any time at the option of the holder. Bondholders exercising their conversion right were 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, with effect from 29 July 2008 conversion price of CHF 200.20).

No convertible bonds were converted in 2010 or in 2009. On 10 June 2010, the remaining CHF 34 million in convertible debt matured and was redeemed (2009: repurchased CHF 8 million).

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 was originally 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%. The drawn part of the loan was reduced by repayments of EUR 100 million in 2009 and EUR 40 million in the first half of 2010.