Note 8 Bonds

December 31 (CHF in thousands)

2011

2010

Bond 2011–2016 1.25% coupon

498,664

Bond 2011–2021 2.25% coupon

350,000

Total

848,664

The 1.25% CHF Bonds, due 2016, and the 2.25% Bonds, due 2021, pay interest annually in arrear, at fixed annual rates of 1.25 percent and 2.25 percent, respectively. The Company recorded net proceeds of CHF 839 million.

The bonds are stated at their nominal value less any discount on issuance. Bonds are accreted to par over the period to maturity.

The Company has, through Group Treasury Operations, entered into interest rate swaps with banks to effectively convert the above bonds into floating rate obligations.

Financial review

© Copyright 2012 ABB.