25 Financial expenses (income)
Financial expense (income) of €204 million breaks down as follows:
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|
(€ million) |
First half 2013 |
First half 2014 |
|
Financial income |
(3) |
(11) |
|
Financial expense |
265 |
217 |
|
|
262 |
206 |
|
|
(2) |
|
|
|
262 |
204 |
The net value of financial income and expense (€206 million) breaks down as follows:
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|
(€ million) |
First half 2013 |
First half 2014 |
||
|
||||
|
Financial expense related to net financial debt |
265 |
222 |
||
|
- Interest and other expenses on bonds |
133 |
170 |
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|
- Interest and other expenses from banks and other lenders |
132 |
52 |
||
|
Other financial expense (income) |
|
|
||
|
- Accretion discount (*) |
7 |
7 |
||
|
- Other financial expense |
10 |
5 |
||
|
- Other financial income |
(3) |
(11) |
||
|
|
14 |
1 |
||
|
Financial expense capitalised |
(17) |
(17) |
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|
|
262 |
206 |
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Financial expense related to net financial debt (€222 million) refers to: (i) interest expense on 14 bonds (€170 million); (ii) interest expense payable to banks relating to revolving credit lines, uncommitted credit lines and fixed-term loans totalling €23 million; and (iii) the portion pertaining to the year of up-front fees on revolving credit lines (€16 million) and fees on unused credit lines (€13 million). Financial expense capitalised (€17 million) relates to the part of financial expense absorbed by investment activities.
Derivatives
Gains on derivatives (€2 million) relate to the effects of hedging foreign exchange risk in view of the signing of a cross currency swap contract15.
15 For further information, see Note 16, “Other current liabilities”.