In September 2005, MTU prepaid 80 million of the high yield bond set up in March 2004, followed by another 30 million in November 2005. Taking into account the accrued interest, these upfront repayments reduced the outstanding amount of the bond with an interest of 8.25 % to 168.4 million. In 2005 the company furthermore repaid the loan from DaimlerChrysler in the amount of 185.5 million that had been granted at the time DaimlerChrysler sold MTU. The company also repaid the loans from related companies Blade Lux Holding Two S.a.r.l and Forex UK Ltd. in the amount of 162.1 million. On top of that, MTU reduced its liabilities to banks. These amounted to 17.0 million at the end of 2005 as compared to 174.2 million the year before.
In contrast, liabilities from finance leasing increased by 1.3 million to 53.2 million in 2005. MTU uses this favorable form of financing for the utilization of land and buildings at MTU Maintenance Hannover GmbH by means of a long-term lease agreement. Additionally, MTU uses finance leasing for the long-term lease of engines for the e-pool services the company leases out engines to customers for the duration of maintenance and repair work.