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12. DEBT
In June 2012, Bunge completed the sale of $600 million aggregate principal amount of senior unsecured notes (senior notes) bearing interest at 3.20%, maturing on June 15, 2017. The senior notes were issued by Bunge’s 100% owned finance subsidiary, Bunge Limited Finance Corp., and are fully and unconditionally guaranteed by Bunge Limited. The offering was made pursuant to a registration statement filed with the U.S. Securities and Exchange Commission. The net proceeds of $595 million were used for general corporate purposes, including, but not limited to, the repayment of outstanding indebtedness, which includes indebtedness under its revolving credit facilities.
In March 2012, Bunge acquired and consolidated an asset management company including certain investment funds for which Bunge has been deemed to be the primary beneficiary. This resulted in an increase in long-term debt attributable to these investment funds of $92 million as of June 30, 2012.
The fair value of Bunge’s long-term debt is based on interest rates currently available on comparable maturities to companies with credit standing similar to that of Bunge. The carrying amounts and fair value of long-term debt are as follows:
|
|
|
June 30, 2012 |
|
December 31, 2011 |
|
|
|
|
Carrying |
|
Fair Value |
|
Carrying |
|
Fair Value |
|
|
(US$ in millions) |
|
Value |
|
(Level 2) |
|
Value |
|
(Level 2) |
|
|
Long-term debt, including current portion |
|
$ |
4,562 |
|
$ |
4,908 |
|
$ |
3,362 |
|
$ |
3,676 |
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|
|
|
|
|
|
|
|
|
|
|
|
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