22. Borrowings

2020

2019

€m

€m

Bank loans

151.3

155.0

Private placement loan notes

50.0

50.0

Origination fees

(0.9)

(1.1)

200.4

203.9

On demand or within one year

87.3

3.6

In the second year

7.3

15.3

In the third year

7.3

15.3

In the fourth year

57.4

15.3

Fifth year and after

41.1

154.4

200.4

203.9

Less: Amount due for settlement within 12 months

(87.3)

(3.6)

Amount due for settlement after 12 months

113.1

200.3

Obligations under the Group borrowing facilities have been cross guaranteed by certain subsidiaries but are otherwise unsecured.

The currency profile of the Group’s borrowings is set out in note 24 (iii).

Borrowing facilities

2020

2019

€m

€m

Overdraft and trade guarantee facilities

Amounts utilised – trade guarantee (note 36)

0.6

0.6

Amounts undrawn

15.4

15.4

Total committed overdraft facilities

16.0

16.0

Committed loan facilities

Amounts drawn

201.3

205.0

Amounts undrawn

75.0

75.0

Total committed loan facilities

276.3

280.0

Uncommitted facilities

224.1

244.8

At 31 December the Group had total committed loan and overdraft facilities of €292.3 million (2019: €296.0 million) which comprised of amounts utilised of €201.9 million (2019: €205.6 million) and amounts undrawn of €90.4 million (2019: €90.4 million). Uncommitted facilities relate to bank and private placement shelf agreements which are available for drawing at the discretion of the relevant lender. All borrowings at 31 December 2020 were unsecured and cross guaranteed by certain subsidiaries within the Group.

The Group’s borrowing facilities comprise of the following;

(i) A bank overdraft and trade guarantee facility with permitted drawing amounts of €16.0 million. At 31 December 2020, €0.6 million (2019: €0.6 million) was utilised on this facility by way of trade guarantees and €nil (2019: €nil) was utilised as an overdraft. Interest rates are calculated by reference to the lender’s prime rate plus a fixed margin. This facility, available for drawing by the Company and certain subsidiaries, is reviewed annually and is repayable on demand.

(ii) A multicurrency revolving credit facility with permitted drawing amounts of €75.0 million, which may be increased to €125.0 million in total at the discretion of the lenders on application. At 31 December 2020, €nil (2019: €nil) was drawn under this facility. Interest rates are arranged at floating rates, calculated by reference to EURIBOR or other reference rate depending on currency drawn plus an agreed margin which varies with the Group’s net debt to EBITDA ratio, which creates a cash flow interest rate risk. This facility is available for drawing by the Company and certain subsidiaries and matures on 30 September 2024.

(iii) Amortising term loan facilities totalling €151.3 million made available by the European Investment Bank to fund the construction of two new cruise ferries one of which was delivered in December 2018. These facilities have been drawn in full and are repayable in equal instalments over a ten year period commencing December 2020 and ending during 2030. Interest rates are fixed for the duration of the term at rates ranging from 1.616% to 1.724%. Following the cancellation of the contract for the second cruise ferry during 2020 due to the insolvency of the shipbuilder, the bank has allowed a limited window in which to agree a substitute project. In the event that a substitute project or an extended time frame is not agreed the €80.0 million loan drawn will be repayable. The outstanding loan has been treated as due within one year as at 31 December 2020.

(iv) Multicurrency private placement loan note shelf agreements agreed with a number of investors with a potential drawing amount of €224.1 million. Loan notes for a total amount of €50.0 million with a maturity of 30 November 2024 at an interest rate of 1.40% have been issued under this facility. The remaining balance of €174.1 million total is available for drawing at the discretion of investors up to 6 October 2023 following agreement of a three year extension to the initial agreed drawing period. Interest rates are set at each drawing date and maturity may extend for up to 15 years.

The weighted average interest rates paid during the financial year were as follows:

2020

2019

Bank overdrafts

0.52%

0.58%

Bank loans

1.58%

1.58%

The average interest rates reflect the terms of the refinancing arrangements concluded in prior periods. No additional bank loans were drawn during 2020. Interest rates on all bank loans drawn in prior periods were fixed at date of drawdown. The Group’s financing facilities contain provisions that where there is a change in control of the Company, lenders may cancel the facilities and declare all utilisations immediately due and payable. A change of control is where any person or group of persons acting in concert becomes the owner of more than 50 per cent of the voting share capital of the Company.

In the opinion of the Directors, the Group and Company are in compliance with the covenants contained in its borrowing agreements as of 31 December 2020.