40 Non-derivative Financial Liabilities

Deferred interest is presented 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, € 109.8 million (Dec. 31, 2019: € 89.7 million) is from bonds reported under non-derivative financial liabilities to other creditors.

The non-derivative financial liabilities developed as follows in the fiscal year under review:

The non-derivative financial liabilities developed as follows in the previous year:

The U.S. dollar 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 € 18.9 million lower than the recognized value (Dec. 31, 2019: € 37.8 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:

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

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

Of the nominal obligations to creditors, € 7,287.6 million (Dec. 31, 2019: € 8,108.6 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.

Financial liabilities to banks and other creditors have an average interst rate of approximately 1.41%. The financial liabilities as a whole do not contain any significant short-term interest rate change 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 chapter [G53] Financial Risk Management).

Repayment of Corporate Bonds

On March 30, 2020, Vonovia repaid the remaining capital of € 300.6 million on a bond issued by Dutch subsidiary Vonovia Finance B.V.

On December 15, 2020, Vonovia repaid a bond of € 751.7 million issued by Dutch subsidiary Vonovia Finance B.V. as scheduled.

Repayment of Commercial Paper

On February 28, 2020, € 300.0 million was repaid under the Commercial Paper Program that the Dutch subsidiary Vonovia Finance B.V. had taken out for the Vonovia Group. This means that the Commercial Paper Program has been repaid in full.

Repayment of Secured Financing

Secured financing with a volume of around SEK 13.7 billion (approximately € 1.3 billion) was repaid in the Swedish subgroup in August and September.

Secured financing with remaining capital of € 290.0 million was repaid to a consortium including Berlin Hyp, Berliner Sparkasse and Landesbank Baden-Württemberg on June 30, 2020, as scheduled.

Issue of Bonds Under the European Medium-Term Notes Program (EMTN)

Via its Dutch subsidiary Vonovia Finance B.V., Vonovia increased an EMTN bond of € 500.0 million that runs until March 2026 by € 200 million with effect from January 30, 2020.

Vonovia placed two bonds with a total volume of € 1.0 billion on March 31, 2020. The new bonds will bear interest at an average rate of 1.9% and have a term of four and ten years, respectively.

Vonovia Finance B.V. placed two bonds with a total volume of € 1.5 billion on July 2, 2020. With terms of six and ten years, respectively, the bonds bear interest at an average rate of 0.8%. The payout date was July 9, 2020.

New Portfolio Loans

Vonovia Finance B.V. took out secured financing for Vonovia of over € 300.0 million with Landesbank Baden-Württemberg in February 2020 as well as over € 100.0 million with ING Bank, a branch of ING-DiBa AG, and over € 100.0 million with Berliner Sparkasse in March 2020, respectively, each with a term of ten years.

Berlin Hyp provided Vonovia Finance B.V. with secured financing of € 184.0 million with a term of ten years that was disbursed in July 2020.

In November 2020, € 200.0 million was disbursed as part of a secured financing arrangement provided by Commerzbank AG with a term of seven years.