32 Non-Derivative Financial Liabilities

 

 

Dec. 31, 2016

 

Dec. 31, 2015

 

 

 

 

 

 

 

 

 

in € million

 

non-current

 

current

 

non-current

 

current

 

 

 

 

 

 

 

 

 

Non-derivative financial liabilities

 

 

 

 

 

 

 

 

Liabilities to banks

 

3,259.1

 

180.3

 

6,444.2

 

199.5

Liabilities to other creditors

 

8,384.3

 

1,474.7

 

7,507.1

 

711.9

Deferred interest from non-derivative financial liabilities

 

 

72.6

 

 

77.2

 

 

11,643.4

 

1,727.6

 

13,951.3

 

988.6

Deferred interest is presented at this point as current in order to show the cash effectiveness of the interest payments transparently. In principle, the deferred interest is part of the non-derivative financial liability. Of the deferred interest from non-derivative financial liabilities, € 68.6 million (Dec. 31, 2015: € 67.2 million) is from bonds reported under non-derivative financial liabilities to other creditors.

The US-$ bonds issued in 2013 are translated at the exchange rate at the end of the reporting period in line with applicable IFRS provisions. Allowing for the hedging rate prescribed through the interest hedging transaction entered into, this financial liability would be € 209.9 million (Dec. 31, 2015: € 179.4 million) lower than the recognized value.

The maturities and average interest rates of the nominal obligations of the liabilities to banks and the liabilities to other creditors are as follows during the fiscal year:

 

 

 

 

 

 

 

 

Repayment of the nominal obligations is as follows:

in € million

 

Nominal obligation Dec. 31, 2016

 

Maturity

 

Average interest rate

 

2017

 

2018

 

2019

 

2020

 

2021

 

From 2022

*

Under the conditions of existing loan agreements, Vonovia is obliged to fulfil certain financial covenants.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bond*

 

600.0

 

2019

 

3.13%

 

 

 

600.0

 

 

 

Bond (US-$)*

 

554.9

 

2017

 

2.97%

 

554.9

 

 

 

 

 

Bond (US-$)*

 

184.9

 

2023

 

4.58%

 

 

 

 

 

 

184.9

Bond (EMTN)*

 

500.0

 

2021

 

3.63%

 

 

 

 

 

500.0

 

Bond (EMTN)*

 

500.0

 

2022

 

2.13%

 

 

 

 

 

 

500.0

Bond (EMTN)*

 

500.0

 

2020

 

0.88%

 

 

 

 

500.0

 

 

Bond (EMTN)*

 

500.0

 

2025

 

1.50%

 

 

 

 

 

 

500.0

Bond (EMTN)*

 

750.0

 

2017

 

0.84%

 

750.0

 

 

 

 

 

Bond (EMTN)*

 

1,250.0

 

2020

 

1.63%

 

 

 

 

1,250.0

 

 

Bond (EMTN)*

 

1,000.0

 

2023

 

2.25%

 

 

 

 

 

 

1,000.0

Bond (EMTN)*

 

500.0

 

2022

 

0.88%

 

 

 

 

 

 

500.0

Bond (EMTN)*

 

500.0

 

2026

 

1.50%

 

 

 

 

 

 

500.0

Bond (EMTN)*

 

500.0

 

2018

 

0.14%

 

 

500.0

 

 

 

 

Bond (Hybrid)

 

700.0

 

2019

 

4.63%

 

 

 

700.0

 

 

 

Bond (EMTN)*

 

1,000.0

 

2024

 

1.25%

 

 

 

 

 

 

1,000.0

Taurus*

 

1,020.4

 

2018

 

2.38%

 

10.8

 

1,009.6

 

 

 

 

Portfolio loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Berlin-Hannoversche Hypothekenbank (Landesbank Berlin) (1)*

 

501.4

 

2018

 

3.10%

 

8.4

 

493.0

 

 

 

 

Berlin-Hannoversche Hypothekenbank, Landesbank Berlin and Landesbank Baden-Württemberg*

 

401.5

 

2020

 

3.61%

 

4.2

 

4.2

 

4.2

 

388.9

 

 

Corealcredit Bank AG (1)*

 

147.7

 

2018

 

4.22%

 

1.8

 

145.9

 

 

 

 

Deutsche Hypothekenbank*

 

174.5

 

2021

 

3.98%

 

4.9

 

5.0

 

5.3

 

5.5

 

153.8

 

HSH Nordbank*

 

17.1

 

2017

 

2.50%

 

17.1

 

 

 

 

 

Nordrheinische Ärzteversorgung

 

33.3

 

2022

 

3.49%

 

0.6

 

0.6

 

0.7

 

0.7

 

0.7

 

30.0

Norddeutsche Landesbank (2)*

 

37.3

 

2020

 

3.99%

 

2.2

 

2.3

 

2.3

 

30.5

 

 

 

 

83.1

 

2023

 

3.76%

 

1.1

 

1.1

 

1.2

 

1.2

 

1.3

 

77.2

Mortgages

 

1,238.3

 

2046

 

1.98%

 

141.1

 

94.3

 

87.8

 

71.0

 

100.0

 

744.1

 

 

13,194.4

 

 

 

 

 

1,497.1

 

2,256.0

 

1,401.5

 

2,247.8

 

755.8

 

5,036.2

In the previous year, the maturities and average interest rates of the nominal obligations were as follows:

 

 

 

 

 

 

 

 

Repayment of the nominal obligations is as follows:

in € million

 

Nominal obligation Dec. 31, 2015

 

Maturity

 

Average interest rate

 

2016

 

2017

 

2018

 

2019

 

2020

 

from 2021

*

Under the conditions of existing loan agreements, Vonovia is obliged to fulfil certain financial covenants.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bond*

 

700.0

 

2016

 

2.13%

 

700.0

 

 

 

 

 

Bond*

 

600.0

 

2019

 

3.13%

 

 

 

 

600.0

 

 

Bond (US-$)*

 

554.9

 

2017

 

2.97%

 

 

554.9

 

 

 

 

Bond (US-$)*

 

184.9

 

2023

 

4.58%

 

 

 

 

 

 

184.9

Bond (EMTN)*

 

500.0

 

2021

 

3.63%

 

 

 

 

 

 

500.0

Bond (EMTN)*

 

500.0

 

2022

 

2.13%

 

 

 

 

 

 

500.0

Bond (EMTN)*

 

500.0

 

2020

 

0.88%

 

 

 

 

 

500.0

 

Bond (EMTN)*

 

500.0

 

2025

 

1.50%

 

 

 

 

 

 

500.0

Bond (EMTN)*

 

750.0

 

2017

 

0.84%

 

 

750.0

 

 

 

 

Bond (EMTN)*

 

1,250.0

 

2020

 

1.63%

 

 

 

 

 

1,250.0

 

Bond (EMTN)*

 

1,000.0

 

2023

 

2.25%

 

 

 

 

 

 

1,000.0

Bond (Hybrid)

 

700.0

 

2019

 

4.63%

 

 

 

 

700.0

 

 

Portfolio loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Norddeutsche Landesbank (1)*

 

137.5

 

2018

 

3.67%

 

3.6

 

3.7

 

130.2

 

 

 

Corealcredit Bank AG (1)*

 

154.0

 

2018

 

4.22%

 

1.8

 

1.8

 

150.4

 

 

 

Berlin-Hannoversche Hypothekenbank (Landesbank Berlin) (1)*

 

569.1

 

2018

 

3.13%

 

8.4

 

8.4

 

552.3

 

 

 

Nordrheinische Ärzteversorgung

 

34.4

 

2022

 

3.49%

 

0.6

 

0.6

 

0.6

 

0.6

 

0.7

 

31.3

AXA S.A. (Société Générale S.A.)*

 

155.4

 

2018

 

3.61%

 

2.4

 

2.4

 

150.6

 

 

 

Norddeutsche Landesbank (2)*

 

39.4

 

2020

 

3.99%

 

2.1

 

2.2

 

2.3

 

2.4

 

30.4

 

 

 

84.1

 

2023

 

3.76%

 

1.0

 

1.1

 

1.1

 

1.2

 

1.2

 

78.5

Berlin-Hannoversche Hypothekenbank, Landesbank Berlin and Landesbank Baden-Württemberg*

 

419.3

 

2020

 

3.58%

 

4.2

 

4.2

 

4.2

 

4.2

 

402.5

 

Deutsche Hypothekenbank*

 

179.7

 

2021

 

3.96%

 

4.7

 

4.9

 

5.1

 

5.3

 

5.5

 

154.2

Mortgages

 

946.8

 

2042

 

2.27%

 

41.4

 

127.8

 

80.4

 

71.1

 

55.4

 

570.7

GAGFAH:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GERMAN RESIDENTIAL FUNDING 2013-1 (CMBS GRF-1)*

 

1,850.6

 

2018

 

2.80%

 

10.0

 

10.0

 

1,830.6

 

 

 

GERMAN RESIDENTIAL FUNDING 2013-2 (CMBS GRF-2)*

 

679.8

 

2018

 

2.67%

 

3.5

 

3.5

 

672.8

 

 

 

Taurus*

 

1,032.3

 

2018

 

3.35%

 

10.8

 

10.8

 

1,010.7

 

 

 

Portfolio loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HSH Nordbank*

 

22.6

 

2017

 

2.75%

 

2.0

 

20.6

 

 

 

 

Berlin-Hannoversche Hypothekenbank (Landesbank Berlin) (2)*

 

228.3

 

2021

 

2.03%

 

2.3

 

2.3

 

2.3

 

2.3

 

2.3

 

216.8

Corealcredit Bank AG (2)*

 

94.1

 

2016

 

2.95%

 

94.1

 

 

 

 

 

Mortgages

 

328.8

 

2054

 

1.53%

 

19.5

 

11.9

 

17.0

 

21.4

 

14.7

 

244.3

 

 

14,696.0

 

 

 

 

 

912.4

 

1,521.1

 

4,610.6

 

1,408.5

 

2,262.7

 

3,980.7

The loan repayments shown for the following years contain contractually fixed minimum repayment amounts.

Of the nominal obligations to creditors, € 3,621.9 million (Dec. 31, 2015: € 6,955.5 million) are secured by land charges and other collateral (account pledge agreements, assignments, pledges of company shares and guarantees). In the event of a breach of the , failure to repay or insolvency, the securities provided are used to satisfy the claims of the creditors.

The nominal interest rates on the financial liabilities to banks and other creditors are between 0.0% and 8.0% (average approx. 2.2%). The financial liabilities as a whole do not contain any significant short-term interest rate risks as they relate either to loans with long-term fixed interest rates or variable-interest liabilities that are hedged using suitable derivative financial instruments (see note [38] Financial Risk Management).

In the reporting year, capital repayments totaling € 4,219.0 million were made (2015: € 2,390.1 million). This figure includes unscheduled repayments of € 3,436.2 million (2015: € 1,338.4 million). These are set against inflows of € 2,576.9 million arising from financing measures (2015: € 5,007.1 million). The unscheduled repayments include € 220.0 million for mortgages, € 2,520.5 million for debentures and € 695.7 million for portfolio loans.

Repayment of GERMAN RESIDENTIAL FUNDING 2013-1 (CMBS GRF-1)

In June 2013, GAGFAH had concluded a loan agreement with a volume of € 1,998.1 million and a term of five years, which was set to reach maturity in August 2018, with GERMAN RESIDENTIAL FUNDING 2013-1 Limited (GRF 2013-1). The loans were refinanced via debentures as part of a commercial mortgage-backed securities (CMBS) structure. The entire financing structure was terminated prematurely and in full in August 2016, when its outstanding volume was € 1,796.8 million.

Repayment of GERMAN RESIDENTIAL FUNDING 2013-2 (CMBS GRF-2)

In October 2013, GAGFAH concluded a loan agreement with a volume of € 699.7 million and a term of five years, which reaches maturity in November 2018, with GERMAN RESIDENTIAL FUNDING 2013-2 Limited (GRF 2013-2). The loans were refinanced via debentures as part of a commercial mortgage-backed securities (CMBS) structure. The entire financing structure was terminated prematurely and in full in November 2016, when its outstanding volume was € 603.1 million.

Issue of Bonds under the EMTN – Tap Issuance (European Medium-Term Notes Program)

Based on the current tap issuance master agreement dated April 12, 2016 (€ 8,000,000,000 debt issuance program), Vonovia has issued the following bonds via its Dutch financing company:

In June 2016, bonds worth € 500 million each were issued in two tranches. The bonds were issued at an issue price of 99.53%, a coupon of 0.875% and with a maturity of six years for one tranche, and at an issue price of 99.165%, a coupon of 1.50% and with a maturity of ten years for the other.

In September 2016, a bond worth € 500 million was issued. The bond was issued at an issue price of 100%, with a maturity of two years and a variable coupon based on the EURIBOR, which was fixed using a corresponding interest rate hedging transaction at 0.14%.

In December 2016, a bond worth € 1,000 million was issued. The bond was issued at an issue price of 99.037%, with a maturity of eight years and a fixed coupon of 1.25%.

Covenants
Requirements specified in loan agreements or bond conditions containing future obligations of the borrower or the bond obligor to meet specific requirements or to refrain from undertaking certain activities.