Cofinimmo - Annual Financial Report 2014

Events after

31.12.2014

Restructuring of interest rate

hedging instruments

In addition to the hedging positions cancelled in May 2014, fol-

lowing the debt reduction resulting from the sale of the shares of

Galaxy Properties, owner of the North Galaxy building, Cofinimmo

cancelled during the month of January 2015 FLOOR options sold:

•

with a strike of 3%;

•

for a notional amount of €200 million;

•

which extend until the end of 2017.

This transaction was motivated by the low interest rate level

(Euribor 3 months rate at 0.078% at 31.12.2014) and will lead to a

decrease in interest charges in the coming years. The cost of this

cancellation amounted to €17.7 million and will be recognised under

the item IAS 39 of the income statement in 2015, 2016 and 2017,

in accordance with the applying accounting principles. For the

year 2015, it represents an amount of €5.86 million under the item

“Revaluation of derivative financial instruments (IAS 39)”.

Extension of two credit lines

In January 2015, two credit lines were extended:

•

a line of €50 million, maturing in 2018, was extended for five

years;

•

a line of €62 million, maturing in 2016, was extended for seven

years.

Following this operation, the average maturity of the Group’s con-

solidated debt has been extended to 3.7 years.

Private placement of bonds

for €190 million

On 16.03.2015, Cofinimmo successfully closed a private placement

of non-convertible seven-year bonds for a total amount of €150 mil-

lion, with a fixed coupon of 1.929%. This placement was completed

on 19.03.2015 under the same conditions with an amount of

€40 million. The average return on these private placements stands

at 1.92%.

The bonds were placed with a limited number of Belgian and

European institutional investors. They will be subject to a request

for admission for negotiation on Alternext Brussels (Euronext). The

settlement, delivery and admission for negotiation of the bonds on

Alternext Brussels should take place on 25.03.2015.

MANAGEMENT REPORT /

Events after 31.12.2014

Prins Boudewijnlaan 41, Edegem (BE)