32 Non-derivative Financial Liabilities

 

 

Dec. 31, 2016

 

Dec. 31, 2017

in € million

 

non-current

 

current

 

non-current

 

current

 

 

 

 

 

 

 

 

 

Non-derivative financial liabilities

 

 

 

 

 

 

 

 

Liabilities to banks

 

3,259.1

 

180.3

 

2,602.3

 

602.7

Liabilities to other creditors

 

8,384.3

 

1,474.7

 

9,857.1

 

921.6

Deferred interest from non-derivative financial liabilities

 

 

72.6

 

 

76.8

 

 

11,643.4

 

1,727.6

 

12,459.4

 

1,601.1

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, € 75.8 million (Dec. 31, 2016: € 68.6 million) is from bonds reported under non-derivative financial liabilities to other creditors.

The nominal obligations of the liabilities to banks and the liabilities to other creditors developed as follows:

in € million

 

As of Jan. 1, 2017

 

First-time consolidation

 

New loans

 

Scheduled repayments

 

Unscheduled repayments

 

Adjusted for effective interest method

 

Other adjustments

 

As of Dec. 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bond

 

598.3

 

 

 

 

 

 

 

 

 

0.6

 

 

 

598.9

Bonds (US$)

 

943.7

 

 

 

 

 

-554.9

 

 

 

 

 

-184.0

 

204.8

Bonds (EMTN)

 

7,437.8

 

 

 

2,000.0

 

-750.0

 

 

 

0.8

 

 

 

8,688.6

Bond (Hybrid)

 

695.4

 

 

 

 

 

 

 

 

 

1.9

 

 

 

697.3

Commercial Paper

 

 

 

 

 

410.2

 

 

 

 

 

 

 

 

 

410.2

CMBS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taurus

 

1,055.9

 

 

 

 

 

-2.7

 

-1,017.7

 

-35.5

 

 

 

Portfolio loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Berlin-Hannoversche Hypothekenbank (Landesbank Berlin)

 

500.5

 

 

 

 

 

-8.4

 

-3.5

 

0.7

 

 

 

489.3

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

 

398.9

 

 

 

 

 

-4.2

 

-54.5

 

1.1

 

 

 

341.3

Corealcredit Bank AG

 

147.1

 

 

 

 

 

-1.8

 

-145.9

 

0.6

 

 

 

Deutsche Hypothekenbank

 

186.4

 

 

 

 

 

-4.8

 

-1.9

 

-2.9

 

 

 

176.8

HSH Nordbank

 

17.3

 

 

 

 

 

-16.4

 

-0.7

 

-0.2

 

 

 

Nordrheinische Ärzteversorgung

 

33.3

 

 

 

 

 

-0.6

 

-1.1

 

 

 

 

 

31.6

Norddeutsche Landesbank

 

119.9

 

 

 

 

 

-3.3

 

 

 

0.1

 

 

 

116.7

Mortgages

 

1,163.9

 

16.6

 

490.7

 

-33.1

 

-156.2

 

3.0

 

 

 

1,484.9

conwert:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bond

 

 

 

65.0

 

 

 

-65.0

 

 

 

 

 

 

 

Mortgages

 

 

 

1,152.7

 

19.6

 

-59.5

 

-362.5

 

-7.0

 

 

 

743.3

Other deferred interest

 

72.6

 

2.9

 

 

 

 

 

 

 

 

 

1.3

 

76.8

 

 

13,371.0

 

1,237.2

 

2,920.5

 

-1,504.7

 

-1,744.0

 

-36.8

 

-182.7

 

14,060.5

The USD bond issued in 2013 is 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 € 23.5 million lower than the recognized value (Dec. 31, 2016: € 209.9 million).

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, 2017

 

Maturity

 

Average interest rate

 

2018

 

2019

 

2020

 

2021

 

2022

 

from 2023

*

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$)*

 

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)*

 

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 (EMTN)*

 

1,000.0

 

2024

 

1.25%

 

 

 

 

 

 

1,000.0

Bond (EMTN)*

 

500.0

 

2022

 

0.75%

 

 

 

 

 

500.0

 

Bond (EMTN)*

 

500.0

 

2027

 

1.75%

 

 

 

 

 

 

500.0

Bond (EMTN)*

 

500.0

 

2025

 

1.13%

 

 

 

 

 

 

500.0

Bond (EMTN)*

 

500.0

 

2019

 

-0.15%

 

 

500.0

 

 

 

 

Bond (Hybrid)*

 

700.0

 

2019

 

4.63%

 

 

700.0

 

 

 

 

Commercial paper*

 

410.2

 

2018

 

-0.20%

 

410.2

 

 

 

 

 

Portfolio loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

489.5

 

2018

 

3.10%

 

489.5

 

 

 

 

 

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

 

342.9

 

2020

 

3.65%

 

4.2

 

4.2

 

334.5

 

 

 

Deutsche Hypothekenbank*

 

167.7

 

2021

 

3.98%

 

5.0

 

5.2

 

5.5

 

152.0

 

 

Nordrheinische Ärzteversorgung

 

31.6

 

2022

 

3.49%

 

0.7

 

0.7

 

0.7

 

0.8

 

28.7

 

Norddeutsche Landesbank (2)*

 

35.1

 

2020

 

3.99%

 

2.3

 

2.3

 

30.5

 

 

 

 

 

82.0

 

2023

 

3.76%

 

1.1

 

1.2

 

1.2

 

1.3

 

1.3

 

75.9

Mortgages

 

2,266.6

 

2046

 

1.65%

 

164.1

 

164.8

 

149.8

 

253.6

 

172.6

 

1,361.7

 

 

14,060.5

 

 

 

 

 

1,577.1

 

1,978.4

 

2,272.2

 

907.7

 

1,702.6

 

5,622.5

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. 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)*

 

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*

 

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*

 

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

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

Of the nominal obligations to creditors, € 2,898.9 million (Dec. 31, 2016: € 3,621.9 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 covenants, 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 -0.2% and 8.0% (average approx. 1.9%). 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).

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, with the corresponding supplements (€ 15,000,000,000 debt issuance program), Vonovia issued two bonds of € 500 million each via its Dutch financing company in January 2017. The bonds were issued at an issue price of 99.863%, a coupon of 0.75% and with a maturity of five years for one tranche, and at an issue price of 99.266%, a coupon of 1.75% and with a maturity of ten years for the other.

Based on the current tap issuance master agreement dated April 20, 2017, with a supplement dated August 30, 2017 (€ 15,000,000,000 debt issuance program), Vonovia issued a bond of € 500 million via its Dutch financing company in September 2017. The bond was issued at an issue price of 99.386%, with a coupon of 1.125% and a maturity of eight years. In November 2017, another bond with a volume of € 500 million was issued at an issue price of 100.448%, with a coupon at three-month EURIBOR plus margin and a maturity of two years.

Commercial Paper Program

On the basis of the master commercial paper agreement of November 2017 (€ 500,000,000 Multi-Currency Commercial Paper Program), Vonovia issued bonds worth € 410 million in total in 8 tranches via its Dutch financing company in December 2017. The individual tranches were issued subject to a negative interest rate of between -0.18% and -0.22% and with a term of between two and five months.