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Cofinimmo’s financial policy aims at optimising the financing cost and maintaining
a continuous access to the capital markets. The company wishes to maintain a
diversification of its financing sources and to keep an enduring relationship with its
banking partners.
These ratios were observed at 31.12.2014 and during the entire
financial year.
Debt structure
Consolidated financial debt
The legally authorised debt ratio for a RREC is 65% (financial and
other debts on total assets). At 31.12.2014, Cofinimmo was in full
compliance with this limit, the debt ratio standing at 48.1%
1,2
. The
loan-to-value ratio (net financial debts on fair value of investment
properties and finance lease receivables) amounted to 48.4% at
31.12.2014. Cofinimmo’s financial policy consists in maintaining a
financial debt ratio below 50%.
Furthermore, the terms and conditions of some of the bank credit
lines allow the Group to take its debt ratio up to 60% maximum.
This ratio is calculated in compliance with the RREC legislation by
dividing the financial and other debts by the total assets.
At 31.12.2014, the Cofinimmo Group’s consolidated financial debts,
both non-current and current, amounted to €1,621.5 million and
were comprised as follows (also see the repayment schedule on
page 73):
Financial risks
Market risks
The market risks which could give rise to fluctuations in the finan-
cial result are confined in the particular case of Cofinimmo to the
liquidity and counterparty risk, as well as the risk associated with
changes in interest rates. The company is not exposed to exchange
risks.
Liquidity and interest rate risks
Cofinimmo’s financial policy is characterised namely by:
•
the diversification of its financing sources (banks and capital
markets);
•
the sound and enduring relationship forged with banking
partners which have good financial ratings;
•
the well-spread loan maturities;
•
the refinancing of maturing loans a year in advance at the
latest;
•
the arrangement of long-term hedging instruments against the
interest rate fluctuation risk;
•
the full hedging of short-term commercial papers by credit lines
available over the long term.
This policy optimises the financing cost and limits the liquidity
and counterparty risk. Cofinimmo also has a general policy of not
mortgaging its properties or giving any other form of security to
its creditors, with the exception of those mentioned on page 185.
Neither its debt nor the confirmed credit lines are subject to early
repayment or margin fluctuation clauses linked to the financial rat-
ing of the company. They are generally associated with conditions
concerning (i) compliance with the rules governing RREC entities,
(ii) compliance with debt ratios and hedging of financial charges by
cash flow and (iii) the fair value of the property portfolio.
1
Versus 48.87% at 31.12.2013.
2
In accordance with Article 13 of the Royal Decree of 13.07.2014, once the debt
ratio exceeds 50%, Cofinimmo will draw up a financial plan accompanied by an
execution schedule, detailing the measures taken to prevent this debt ratio from
exceeding 65% of the consolidated assets. See Note 24.
MANAGEMENT REPORT /
Management of financial resources
Management
of financial
resources
70