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Non-current financial debt | 12 Months Ended
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Dec. 31, 2022
Disclosure of financial liabilities [abstract] |
Disclosure of financial liabilities [text block] | 19. Non-current financial debt
(USD millions) |  | 2022 |  | 2021 |
Straight bonds |  | 22 341 |  | 25 296 |
Liabilities to banks and other financial institutions 1 |  | 144 |  | 227 |
Total, including current portion of non-current financial debt |  | 22 485 |  | 25 523 |
Less current portion of non-current financial debt |  | -2 241 |  | -2 621 |
Total non-current financial debt |  | 20 244 |  | 22 902 |
1 Average interest rate 2.3% (2021: 0.9%)
All bonds are initially recorded at the amount of proceeds received, net of transaction costs. They are subsequently carried at amortized cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognized as a charge to the consolidated income statement over the period of the relevant bond. Financial debts, including current financial debts, contain only general default covenants. The Group is in compliance with these covenants. The percentage of fixed-rate financial debt to total financial debt was 86% at December 31, 2022, and 87% at December 31, 2021. The average interest rate on total financial debt in 2022 was 2.4% (2021: 1.9%). Note 29 contains a maturity table of the Group’s future contractual interest payments commitments. The following table provides a breakdown of straight bonds:
Coupon |  | Currency |  | Notional amount (millions) |  | Issuance year |  | Maturity year |  | Issuer |  | Issue price |  | 2022 (USD millions) |  | 2021 (USD millions) |
2.400% |  | USD |  | 1 500 |  | 2012 |  | 2022 |  | Novartis Capital Corporation, New York, United States |  | 99.225% |  |  |  | 1 498 |
3.700% |  | USD |  | 500 |  | 2012 |  | 2042 |  | Novartis Capital Corporation, New York, United States |  | 98.325% |  | 490 |  | 490 |
3.400% |  | USD |  | 2 150 |  | 2014 |  | 2024 |  | Novartis Capital Corporation, New York, United States |  | 99.287% |  | 2 147 |  | 2 144 |
4.400% |  | USD |  | 1 850 |  | 2014 |  | 2044 |  | Novartis Capital Corporation, New York, United States |  | 99.196% |  | 1 827 |  | 1 826 |
1.625% |  | EUR |  | 600 |  | 2014 |  | 2026 |  | Novartis Finance S.A., Luxembourg, Luxembourg |  | 99.697% |  | 638 |  | 676 |
0.250% |  | CHF |  | 500 |  | 2015 |  | 2025 |  | Novartis AG, Basel, Switzerland |  | 100.640% |  | 541 |  | 547 |
0.625% |  | CHF |  | 550 |  | 2015 |  | 2029 |  | Novartis AG, Basel, Switzerland |  | 100.502% |  | 595 |  | 602 |
1.050% |  | CHF |  | 325 |  | 2015 |  | 2035 |  | Novartis AG, Basel, Switzerland |  | 100.479% |  | 352 |  | 356 |
3.000% |  | USD |  | 1 750 |  | 2015 |  | 2025 |  | Novartis Capital Corporation, New York, United States |  | 99.010% |  | 1 742 |  | 1 740 |
4.000% |  | USD |  | 1 250 |  | 2015 |  | 2045 |  | Novartis Capital Corporation, New York, United States |  | 98.029% |  | 1 221 |  | 1 220 |
0.125% |  | EUR |  | 1 250 |  | 2016 |  | 2023 |  | Novartis Finance S.A., Luxembourg, Luxembourg |  | 99.127% |  | 1 330 |  | 1 409 |
0.625% |  | EUR |  | 500 |  | 2016 |  | 2028 |  | Novartis Finance S.A., Luxembourg, Luxembourg |  | 98.480% |  | 528 |  | 559 |
2.400% |  | USD |  | 1 000 |  | 2017 |  | 2022 |  | Novartis Capital Corporation, New York, United States |  | 99.449% |  |  |  | 1 000 |
3.100% |  | USD |  | 1 000 |  | 2017 |  | 2027 |  | Novartis Capital Corporation, New York, United States |  | 99.109% |  | 994 |  | 993 |
1.125% |  | EUR |  | 600 |  | 2017 |  | 2027 |  | Novartis Finance S.A., Luxembourg, Luxembourg |  | 99.874% |  | 638 |  | 677 |
0.500% |  | EUR |  | 750 |  | 2018 |  | 2023 |  | Novartis Finance S.A., Luxembourg, Luxembourg |  | 99.655% |  | 798 |  | 846 |
1.375% |  | EUR |  | 750 |  | 2018 |  | 2030 |  | Novartis Finance S.A., Luxembourg, Luxembourg |  | 99.957% |  | 797 |  | 846 |
1.700% |  | EUR |  | 750 |  | 2018 |  | 2038 |  | Novartis Finance S.A., Luxembourg, Luxembourg |  | 99.217% |  | 792 |  | 840 |
1.750% |  | USD |  | 1 000 |  | 2020 |  | 2025 |  | Novartis Capital Corporation, New York, United States |  | 99.852% |  | 998 |  | 998 |
2.000% |  | USD |  | 1 250 |  | 2020 |  | 2027 |  | Novartis Capital Corporation, New York, United States |  | 99.909% |  | 1 246 |  | 1 246 |
2.200% |  | USD |  | 1 500 |  | 2020 |  | 2030 |  | Novartis Capital Corporation, New York, United States |  | 99.869% |  | 1 494 |  | 1 493 |
2.750% |  | USD |  | 1 250 |  | 2020 |  | 2050 |  | Novartis Capital Corporation, New York, United States |  | 97.712% |  | 1 215 |  | 1 214 |
0.000% 1 |  | EUR |  | 1 850 |  | 2020 |  | 2028 |  | Novartis Finance S.A., Luxembourg, Luxembourg |  | 99.354% |  | 1 958 |  | 2 076 |
Total straight bonds |  |  |  |  |  |  |  |  |  |  |  |  |  | 22 341 |  | 25 296 |
1 The EUR 1 850 million bond issued in 2020 features a coupon step-up of 0.25% commencing with the first interest payment date after December 31, 2025, if one or both of the 2025 Patient Access Targets are not met. These 2025 Patient Access Targets are the 2025 Flagship Programs Patient Reach Target and the 2025 Strategic Innovative Therapies Patient Reach Target, as defined in the bond prospectus. As of December 31, 2022, there is no indication that these 2025 Patient Access Targets will not be met.
The following tables provide a breakdown of total non-current financial debt, including current portion by maturity and currency: Breakdown by maturity:
(USD millions) |  | 2022 |  | 2021 |
2022 |  |  |  | 2 621 |
2023 |  | 2 241 |  | 2 342 |
2024 |  | 2 147 |  | 2 144 |
2025 |  | 3 281 |  | 3 284 |
2026 |  | 638 |  | 693 |
2027 |  | 2 909 |  | 2 916 |
After 2027 |  | 11 269 |  | 11 523 |
Total |  | 22 485 |  | 25 523 |
Breakdown by currency:
(USD millions) |  | 2022 |  | 2021 |
US dollar (USD) |  | 13 376 |  | 15 862 |
Euro (EUR) |  | 7 478 |  | 7 930 |
Japanese yen (JPY) |  | 76 |  | 174 |
Swiss franc (CHF) |  | 1 488 |  | 1 505 |
Others |  | 67 |  | 52 |
Total |  | 22 485 |  | 25 523 |
The following table shows the comparison of balance sheet carrying value and fair value of total non-current financial debt, including current portion:
(USD millions) |  | 2022 Balance sheet |  | 2022 Fair values |  | 2021 Balance sheet |  | 2021 Fair values |
Straight bonds |  | 22 341 |  | 20 277 |  | 25 296 |  | 27 079 |
Others |  | 144 |  | 144 |  | 227 |  | 227 |
Total |  | 22 485 |  | 20 421 |  | 25 523 |  | 27 306 |
The fair values of straight bonds are determined by quoted market prices. Other financial debts are recorded at notional amounts, which are a reasonable approximation of the fair values.

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