13 Borrowings

In CHF million  
  30.06.2011 31.12.2010
Hybrid debt
  2 496 2 141
Bank loans
Finance lease obligations
  1 1
Total borrowings
  2 723 2 142

Hybrid debt

On 4 April 2011, Swiss Life AG raised CHF 325 million with a placement of subordinated perpetual callable bonds guaranteed by Swiss Life Holding. CHF 75 million was additionally issued in June 2011. The bonds have no fixed maturity date but are first callable on 4 October 2016 or at each interest payment date thereafter at the option of the issuer. The coupon has been fixed for the first five and a half years at 5.25% p.a. If the bonds are not redeemed on 4 October 2016, the interest resets at a rate fixed for the subsequent five years, consisting of the aggregate of the prevailing five-year CHF swap rate and the initial margin of 3.551%.

Bank Loans

Bank loans of CHF 226 million as at 30 June 2011 relate to mortgage loans of newly acquired real estate.