85 / 236
2016
2017
2018
2019
2020
2021
2022
353.3
171.0
100.0
146.0
10.0 100.0
445.0
250.0
200.0
204.0
291.0
0
200
400
600
1,200
1,000
800
600
400
200
0
3.0
2.5
2.0
1.5
1.0
0.5
0
2016 2017
2019
2021
2018
2020
2022
1.44% 1.44%
2.35% 2.33%
1.96%
2.33% 2.40%
Situation of long-term financial
commitments
The weighted average maturity of Cofinimmo’s financial commitments
has increased to 5.3 years at 31.12.2015 versus 3.4 years at the end of
2014. This calculation excludes short-term maturities of commercial
papers, which are fully covered by the undrawn portions of long-term
credit facilities. The calculation also does not account for maturities for
which refinancing is already in place. The long-term confirmed finan-
cial credit lines (bank lines, bonds, commercial papers of over one year
and capital leases), with outstandings totalling 2,280.0 million EUR on
31.12.2015, have a homogeneously spread maturity profile up to 2022,
with a maximum of 26% of these outstandings maturing during the
same year, in this case 2020.
Interest rate hedging
Cofinimmo’s average cost of debt, including bank margins, stood at
2.9% during financial year 2015, versus 3.4% during financial year 2014
(also see Note 16).
At 31.12.2015, the majority of the debt was at fixed rate. This part
is composed of convertible bonds of 387.6 million EUR, including
174.8 million EUR maturing in 2016, and private placements of non-con-
vertible bonds totalling 380 million EUR.
Given that the other part of the debt was at a short-term floating
rate, the company is exposed to a risk of a rise in rates, which could
have a negative impact on its financial result. That is why Cofinimmo
simultaneously uses partial hedging of its global debt through hedging
instruments such as Interest Rate Swaps (IRS) – see the “Risk Factors”
chapter of this Annual Financial Report on page 8).
In 2015, Cofinimmo used Interest Rate Swaps to establish new hedges
for the 2020-2022 period:
•
IRS, covering 2020, for a notional amount of 350 million EUR, with a
strike rate of 0.85%;
•
IRS, covering 2021, for a notional amount of 150 million EUR, with a
strike rate of 1%;
•
IRS, covering 2022, for a notional amount of 150 million EUR, with a
strike rate of 1.31%.
Repayment schedule for long-term financial commitments -
2,280 million EUR (x 1,000,000 EUR)
Equity market
Bank facilities
Refinanced
Situation of interest rate hedging in future years
(x 1,000,000 EUR)
(in %)
Notional amount
Weighted average rate
81