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 31.12.2017 | ||||||||||
Borrowings | 558.0 | 306.0 | 359.3 | 689.7 | 1 913.0 | |||||
Total in % | 29.2 | 16.0 | 18.8 | 36.0 | 100.0 | |||||
As at 30.06.2018 | ||||||||||
Borrowings | 450.5 | 301.0 | 362.8 | 742.0 | 1 856.3 | |||||
Total in % | 24.3 | 16.2 | 19.5 | 40.0 | 100 |
The financial liabilities consist of loans secured by mortgage (fixed advances and fixed-rate mortgages) and eight bond issues. The bank loans in the form of fixed advances are extended on a rolling basis. Bond issues and 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 2018–2023 0.50% bond with an issue price of 100.123% (CHF 125.0 million) was paid up on 19 April 2018. In addition to the interest rate of 0.50% actually payable, the expense – corresponding to an effective interest rate of 0.55% – is also deferred to the income statement.
In the first half of 2018, CHF 52 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 53 months (31.12.2017: 49 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 30.06.2018 | Fair value | Book value as at 31.12.2017 | Fair value As at 31.12.2017 | |||||
0.875% bond issue 2017–30.03.2027 | 160.0 | 160.2 | 157.9 | 160.2 | 163.5 | |||||
0.75% bond issue 2017–19.06.2026 | 150.0 | 149.9 | 147.9 | 149.9 | 150.6 | |||||
1.375% bond issue 2015–31.03.2025 | 100.0 | 100.4 | 103.6 | 100.4 | 106.3 | |||||
0.625% bond issue 2016–10.05.2024 | 150.0 | 149.6 | 149.9 | 149.5 | 152.0 | |||||
0.50% bond issue 2018–19.04.2023 | 125.0 | 124.7 | 125.0 | – | – | |||||
0.75% bond issue 2015–31.03.2021 | 120.0 | 120.2 | 121.7 | 120.3 | 122.3 | |||||
2.00% bond issue 2013–23.09.2020 | 150.0 | 149.6 | 156.0 | 149.5 | 157.8 | |||||
1.25% bond issue 2014–02.04.2019 | 125.0 | 124.9 | 126.4 | 124.9 | 127.3 | |||||
Fixed-rate mortgages | 453.8 | 453.8 | 461.5 | 403.3 | 411.5 |
During the period under review, CHF 0.1 million was spent on the amortisation of the issuing costs for the bonds (1st half-year 2017: CHF 0.2 million).
As at 30 June 2018, fixed advances amounting to CHF 322.5 million and fixed-rate mortgages amounting to CHF 453.8 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 2018 is 1.57% (31 December 2017: 1.53%).
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.