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Non-current financial debt
 12 Months Ended
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.