27.Contingent Liabilities and Other Financial Commitments
Contingent liabilities
The following table presents warranty contracts as well as other contingent liabilities existing as of the reporting date:
|
|
|
|
|
|
|
Dec. 31, 2019 |
|
Dec. 31, 2020 |
|---|---|---|---|---|
|
|
€ million |
|
€ million |
Warranties |
|
2 |
|
3 |
Other contingent liabilities |
|
3 |
|
3 |
Total |
|
5 |
|
6 |
Other financial commitments
The other financial commitments were as follows:
|
|
|
|
|
||||
|
|
Dec. 31, 2019 |
|
Dec. 31, 2020 |
||||
|---|---|---|---|---|---|---|---|---|
|
|
€ million |
|
€ million |
||||
Purchase agreement in regard to the acquisition of RFM from Koninklijke DSM N.V.1 |
|
– |
|
1,629 |
||||
Orders already placed for started or planned investment projects |
|
340 |
|
236 |
||||
Loan commitments to pension funds |
|
208 |
|
219 |
||||
Total |
|
548 |
|
2,084 |
||||
|
||||||||
Some of the pension obligations allocable to the Covestro Group are funded through pension institutions used jointly with other companies (especially Bayer AG). In such cases, it can generally be contractually ensured that Covestro participates accordingly in funding measures that serve to guarantee adequate funding status and/or adequate solvency capital of these pension institutions for the long term. To this end, Covestro AG agreed to grant interest-bearing loans of up to €208 million for Bayer-Pensionskasse VVaG, Leverkusen (Germany), and up to €11 million for Rheinische Pensionskasse VVaG, Leverkusen (Germany), for the effective initial fund to be drawn down as required.