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For the years 2016 to 2022, Cofinimmo projects to maintain a property
portfolio partially financed through debt. The company will thus owe
an interest flow to be paid, which forms the element covered by the
derivative financial instruments held for trading described above. At
31.12.2015, Cofinimmo’s debt amounted to 1,255 million EUR. Based on
future projections, this debt will be 1,420 million EUR as at 31.12.2016,
1,434 million EUR at the end of 2017 and 1,470 million EUR at the end of
2018.
Financial instruments held for trading
The Group contracted a Cancellable Interest Rate Swap. This instru-
ment, recognised as trading, is made up of a classic IRS (here: fixed
payer) and a short position in an option that allows the counterparty
to cancel this Swap as from a certain date. The sale of this option
allowed to reduce the guaranteed fixed rate during the entire period.
Cash flow hedge
Period
Option Exercise price
2015 notional amount
(x 1,000 EUR)
2014 notional amount
(x 1,000 EUR)
2015
CAP bought
4.25%
0
400,000
2016
CAP bought
4.25%
0
400,000
2017
CAP bought
4.25%
0
400,000
2015
FLOOR sold
3.00%
0
400,000
2016
FLOOR sold
3.00%
0
400,000
2017
FLOOR sold
3.00%
0
400,000
At 31.12.2015, Cofinimmo had a floating-rate debt for a notional amount
of 560million EUR. This amount was hedged against interest rate risk
with IRS swaps for a notional amount of 540million EUR. During 2015,
in addition to the hedging positions cancelled in May2014, following
the decline in debt and given the persistence of low interest rates,
Cofinimmo deemed it opportune to cancel the corridor fixed between
3.00% and 4.25%, made up of CAPs purchased and FLOORs sold for
400million EUR. Consequently, the notional amount at 31.12.2015 is nil
(2014: 400million EUR), as detailed in the table below. Therefore, at
the end of 2015, there are no longer derivatives considered cash flow
hedging instruments.
The total cost of this restructuring amounted to 32.1 million EUR.
The cancellation of FLOOR options will result in a decrease in interest
charges paid in the coming years.
Following this restructuring, a charge of 19.0 million EUR has been
booked in 2015 under “Valorisation of financial instruments” of the
income statement.
At the end of 2015, a balance of 17.2 million EUR remains open in the
other elements of the global result, which will be covered in the years
2016-2018. In accordance with the hedging accounting rule, the
conversion of the other elements of the global result in the income
statements will only take place at maturity of the hedging instrument.
The cancellation of the FLOOR options will result in a decrease of the
disbursed interest charges in future years.
(x 1,000 EUR)
Period covered by the IRS
Active /
Forward
Option Exercise price Floating Rate 2015 notional
2014 notional
First option
2008-2018
Assets
Cancellable
IRS
4.10%
3M
140,000
140,000
15.10.2011
2014-2017
Assets
IRS
0.51%
3M
400,000
400,000
2018
Forward
IRS
2.11%
1M
660,000
660,000
2019
Forward
IRS
2.37%
1M
800,000
800,000
2018-2019
Forward
IRS
2.18%
1M
200,000
200,000
2020
Forward
IRS
0.86%
1M
350,000
2021
Forward
IRS
1.00%
1M
150,000
2022
Forward
IRS
1.31%
1M
150,000
2020-2022
Forward
IRS
2.73%
1M
500,000
500,000
2012-2016
(fixed to floating)
Forward
IRS
3.60% 3M+300.5 bps
100,000
100,000
Obligation of liquidity for repayments, related to derivative financial instruments
(x 1,000 EUR)
2015
2014
Between one and two years
-18,098
-37,372
Between two and five years
-56,111
-54,410
Beyond five years
-17,146
-26,114
TOTAL
-91,356
-117,896
188
ANNUAL ACCOUNTS /
Notes to the consolidated accounts