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ANNUAL ACCOUNTS /
Notes to the consolidated accounts
Cofinimmo projects to maintain a property portfolio partially
financed by debt. The company will thus owe an interest flow to be
paid, which forms the element covered by the derivative financial
instruments described above.
At 31.12.2014, Cofinimmo had a debt of €1,622 million which is par-
tially covered by derivative instruments of the cash flow hedging
type. Based on future projections, this debt will amount to €1,621 mil-
lion at 31.12.2015 and €1,635 million at 31.12.2016.
Cash flow hedge
Period
Option
Exercise price
Annual amount 2014 (x €1,000)
Annual amount 2013 (x €1,000)
2014
CAP bought
4.25%
400,000
1,000,000
2015
CAP bought
4.25%
400,000
1,000,000
2016
CAP bought
4.25%
400,000
1,000,000
2017
CAP bought
4.25%
400,000
1,000,000
2014
FLOOR sold
3.00%
400,000
1,000,000
2015
FLOOR sold
3.00%
400,000
1,000,000
2016
FLOOR sold
3.00%
400,000
1,000,000
2017
FLOOR sold
3.00%
400,000
1,000,000
At 31.12.2014, Cofinimmo had a floating-rate debt for a notional
amount of €1,119 million. This amount was hedged against interest
rate risks with CAP for a notional amount of €400million (2013: €1 bil-
lion), FLOOR sold forming a collar with CAP for a notional amount of
€400 million (2013: €1 billion), and Interest Rate Swaps for a notional
amount of €540 million (2013: €140 million).
In a context of decreasing interest rates, Cofinimmo decided to (par-
tially) cancel these hedging instruments in January 2015. Cofinimmo
took advantage of favourable market conditions to restructure its
derivatives portfolio.
(x €1,000)
Period
Option Exercise price Floating rate
Notional
amount 2014
Notional
amount 2013
First option
2008-2018
Cancellable IRS
4.10%
3M
140,000
140,000
15.10.2011
2014-2018
IRS
0.51%
3M
400,000
2018
IRS
2.11%
1M
660,000
660,000
2019
IRS
2.37%
1M
800,000
800,000
2018-2019
IRS
2.18%
1M
200,000
200,000
2020-2022
IRS
2.73%
1M
500,000
500,000
2012-2016 (fixed to floating)
IRS
3.60% 3M+300.5bps
100,000
100,000
2014
CAP
4.25%
3M
200,000
Liquidity obligation at maturity related to the financial derivatives (non-discounted flows, basis rate: Euribor 3 months at 31.12.2014)
(x €1,000)
2014
2013
Between one and two years
-37,372
-29,280
Between two and five years
-54,410
-43,948
Beyond five years
-26,114
622
TOTAL
-117,896
-72,606
Derivative financial instruments held for trading
The Group contracted a Cancellable Interest Rate Swap. This instru-
ment, recorded under “trading”, is comprised of a classic IRS (fixed
payer) and a short position in an option which enables the counter-
party to cancel the swap as from a certain date. The disposal of this
option resulted in a decrease of the guaranteed fixed rate over the
whole period.
Effective part of the changes in the fair value of the derivative financial instruments, qualified as cash flow hedge
(x €1,000)
2014
2013
Effective part of the fair value of authorised cash flow hedging instruments
-4,716
36,787
AT 31.12
-4,716
36,787
Ineffective part of the changes in the fair value of the derivative financial instruments, qualified as cash flow hedge
(x €1,000)
2014
2013
Ineffective part of the fair value of authorised cash flow hedging instruments
1,719
643
Impact of the recycling under the income statement of hedging instruments which relationship with the
hedged risk was terminated
-56,515
-20,501
AT 31.12
-54,796
-19,858