Borrowings

12 Months Ended

Dec. 31, 2021

Text block [abstract]

Borrowings

37 Borrowings

	2021		2020
Capital funding		1,292		1,241
Operational funding		8,369		7,283
At December 31		9,661		8,524
Current		824		950
Non-current		8,837		7,574
Fair value of borrowings		10,171		9,165

Aegon’s borrowings are defined separately as capital funding and operational funding. Capital funding includes debt securities that are issued for general corporate purposes and for capitalizing its business units. Capital funding is part of the Company’s total capitalization that is used for financing its subsidiaries and the cash held at the holding company. Operational funding includes debt securities that are issued for financing of dedicated pools of assets. These assets are either legally segregated or tracked as separate portfolios.

The difference between the contractually required payment at maturity date and the carrying amount of the borrowings amounted to EUR 25 million negative (2020: EUR 15 million negative).

Capital funding

A detailed composition of capital funding is included in the following table:

(sorted at maturity)	Coupon rate		Coupon date		Issue /     Maturity		2021		2020
EUR 500 million Senior Unsecured Notes		1.00%		December 8		2016 / 23		499		498
GBP 250 million Medium-Term Notes		6.125%		December 15		1999 / 31		296		278
GBP 400 million Senior Unsecured Notes		6.625%		Semi-annually		2009 / 39		472		442
Other								26		24
At December 31								1,292		1,241

These loans are considered senior debt in calculating financial leverage in note 43 Capital management and solvency.

Operational funding

During 2021, the operational funding increased by EUR 1.1 billion mainly due to the latest securitization of mortgage loans originated by Aegon the Netherlands “SAECURE 20” of EUR 0.6 billion, new covered bonds of EUR 0.5 billion, as well as an increase in Federal Home Loan Bank advances of EUR 0.5 billion. This is offset by a decrease of other mortgage loan funding of EUR 0.5 billion.

During 2020, operational funding decreased by EUR 0.3 billion mainly due to the redemption of ‘SAECURE 15’ of EUR 0.9 billion and the redemption of a covered bond for EUR 0.7 billion. This is partly offset by an increase in other mortgage loan funding of EUR 0.7 billion and the issuance of a covered bond in the Netherlands of EUR 0.5 billion.

	Coupon rate		Coupon date		Issue /     Maturity		2021		2020
Revolving Loan Facility Warehouse Mortgage Loans1)		Floating		Monthly		- / 22		592		743
Revolving Loan Facility Warehouse Mortgage Loans1)		Floating		Monthly		- / 24		494		802
EUR 875 million “SAECURE 16” RMBS Note1), 2)		Floating		Quarterly		2018 / 23		676		758
EUR 512 million “SAECURE 18” RMBS Note1), 3)		Floating		Quarterly		2019 / 25		355		422
EUR 657 million “SAECURE 20” RMBS Note1), 4)		Floating		Quarterly		2021 / 27		625		-
EUR 500 million Conditional Pass-Through Covered Bond1), 5)		0.250%		Annual		2016 / 23		499		498
EUR 500 million Conditional Pass-Through Covered Bond1), 6)		0.375%		Annual		2017 / 24		499		498
EUR 500 million Conditional Pass-Through Covered Bond1), 7)		0.010%		Annual		2020 / 25		506		508
EUR 500 million Conditional Pass-Through Covered Bond1), 8)		0.750%		Annual		2017 / 27		492		491
EUR 500 million Conditional Pass-Through Covered Bond1), 9)		0.375%		Annual		2021 / 36		494		-
FHLB Secured borrowings1)		Floating		Quarterly		2021 / 24		2,634		2,055
Aegon Bank Senior Non-Preferred debt1)		0.625%		Annual		2019 / 24		499		498
Other								5		9
At December 31								8,369		7,283

1  Issued by a subsidiary of Aegon N.V.

2  The first optional redemption date is October 30, 2023; the final legal maturity date is October 30, 2091. Notes are fully collateralized by mortgage loans which are part of Aegon’s general account investments.

3  The first optional redemption date is July 28, 2025; the final legal maturity date is April 28, 2092. Notes are fully collateralized by mortgage loans which are part of Aegon’s general account investments.

4  The first optional redemption date is October 28, 2027; the final legal maturity date is April 28, 2093. Notes are fully collateralized by mortgage loans which are part of Aegon’s general account investments.

5  The maturity date is May 25, 2023; the extended due for payment date is May 25, 2055.

6  The maturity date is November 21, 2024; the extended due for payment date is November 21, 2056.

7  The maturity date is November 16, 2025; the extended due for payment date is November 16, 2057.

8  The maturity date is June 27, 2027; the extended due for payment date is June 27, 2059.

9  The maturity date is June 9, 2036; the extended due for payment date is June 9, 2037.

Other

Undrawn committed borrowing facilities:	2021		2020
Floating-rate
- Expiring within one year		408		666
- Expiring beyond one year		2,991		2,622
At December 31		3,399		3,288

There were no defaults or breaches of conditions during the period.