13 Financial liabilities
Maturity of financial liabilities (capital lock-up at nominal values)
CHF million | <1 year | 1–3 years | 3–5 years | >5 years | Total | |||||
As at 31.12.2016 | ||||||||||
Borrowings | 683.0 | 131.0 | 327.0 | 460.3 | 1 601.3 | |||||
Total in % | 42.7 | 8.2 | 20.4 | 28.7 | 100.0 | |||||
As at 30.06.2017 | ||||||||||
Borrowings | 428.0 | 131.0 | 408.0 | 667.8 | 1 634.8 | |||||
Total in % | 26.2 | 8.0 | 25.0 | 40.8 | 100.0 |
The financial liabilities consist of loans secured by mortgage (fixed advances and fixed-rate mortgages) and six bond issues. The bank loans in the form of fixed advances are extended on a rolling basis. Apart from the bond issues, only bank loans with contractually agreed remaining terms to maturity greater than twelve months are reported as long-term financial liabilities.
During the reporting period, a 2017–2027 0.875% bond with an issue price of 100.550% (CHF 160.0 million) was paid up on 30 March 2017. In addition to the interest rate of 0.875% actually payable, the expense – corresponding to an effective interest rate of 0.859% – is also deferred in the income statement.
In the first half of 2017, CHF 130 million in short-term financial liabilities were refinanced on a long-term basis, increasing the average interest lock-in period for all financial liabilities to 52 months (31.12.2016: 36 months).
As at the balance sheet date, the bond issues and fixed-rate mortgages are recognised as follows:
CHF million | Nominal | Book value as at 30.06.2017 | Fair value | Book value as at 31.12.2016 | Fair value as at 31.12.2016 | |||||
0.875% bond issue 2017–30.03.2027 | 160.0 | 160.2 | 161.0 | – | – | |||||
1.375% bond issue 2015–31.03.2025 | 100.0 | 100.4 | 106.5 | 100.4 | 106.6 | |||||
0.625% bond issue 2016–10.05.2024 | 150.0 | 149.5 | 151.5 | 149.4 | 150.0 | |||||
0.75% bond issue 2015–31.03.2021 | 120.0 | 120.3 | 122.3 | 120.4 | 122.2 | |||||
2.00% bond issue 2013–23.09.2020 | 150.0 | 149.4 | 155.3 | 149.4 | 159.9 | |||||
1.25% bond issue 2014–02.04.2019 | 125.0 | 124.9 | 127.8 | 124.8 | 128.4 | |||||
Fixed-rate mortgages | 404.8 | 404.8 | 414.0 | 276.3 | 286.6 |
During the period under review, CHF 0.2 million was spent on the amortisation of the issuing costs for the bonds (1st half-year 2016: CHF 0.2 million).
As at 30 June 2017, fixed advances amounting to CHF 425 million and fixed-rate mortgages amounting to CHF 404.8 million (at nominal values) are in place, all of which were taken out with Swiss banks, insurance companies or pension funds.
The average interest rate of all financial liabilities as at 30 June 2017 is 1.69% (31 December 2016: 1.67%).
During the reporting period, the contractual clauses (financial covenants) relating to minimum capitalisation (equity ratio, net gearing, interest coverage ratio and refinancing of properties) agreed upon with the lenders were complied with without exception.