logo di stampa inglese
 
« back

30 Payables to banks and medium/long- and short-term financing

 

As at 31 December 2010, medium/long term loans totalled Euro 2,313,722 thousand (Euro 2,144,857 thousand as at 31 December 2009), and relate to mortgages and loans of Euro 506,778 thousand and the bond issues of Euro 1,806,944 thousand.

Medium/long-term amounts due to banks also include loans subscribed by the subsidiary Fea Srl for a total of Euro 55,900 thousand. These loans are guaranteed by mortgages and special privileges for the banking pool underwriting the loan. Repayment, with final maturity on 30 June 2019, shall be in 6-monthly instalments, as established in the contract.

The table below shows the bonds and loans as at 31 December 2010, stated at their residual nominal value (millions of €), with an indication of the portion expiring within and after 5 years:

TypeResidual amount 31/12/2010Portion due within one yearPortion due within 5 yearsPortion due after 5 years
Bond1,250 500750
Convertible Bond 140 140 
Puttable Bond/Loan540  540
Amortising175509332
Amortising backed by collateral security66102630
Bullet18001800
 Total 2,350609381,352

The main terms and conditions of the puttable bonds and loans are shown below:

Puttable Bonds and Loans Term (years)ExpiryNominal valueCoupon
Convertible Bond Luxembourg stock exchange301/10/13140Fixed, annual
EurobondLuxembourg stock exchange1015/02/16500Fixed, annual
EurobondLuxembourg stock exchange1003/12/19500Fixed, annual
Bond (ex put bond)In 2010 the holder has the possibility of requesting redemption at par 1317/11/20100For first 3 years, 3-month Euribor minus 29 cents. For the next 10 years, fixed rate 4.593% plus 10-year credit spread.
Put LoanFrom 2010 the holder has the possibility of requesting redemption at par every two years1322/11/2070For the first 3 years, 3-month Euribor minus 45 cents. For the next 10 years, fixed rate of 4.41% plus a 2-year credit spread.
Put LoanFrom 2010 the holder has the possibility of requesting redemption at par every two years1306/12/2070For the first 3 years, 3-month Euribor minus 46 cents. For the next 10 years, fixed rate of 4.44% plus a 2-year credit spread.
BondCross Currency Swap 150 €mln1505/08/2420000 JPYFixed, half-yearly
Put Bond From 2012 the holder has the possibility of requesting redemption at par every two years2310/10/31200For the first 3 months, fixed rate of 4.20%. For the next 20 years, fixed rate of 4.65% plus a 5-year credit spread.
Put Bond From 2011 the holder has the possibility of requesting redemption at par every two years2749164200For the first 5 years, 3-month Euribor minus 45 cents. For the next 22 years, fixed rate of 4.85% plus a 2-year credit spread.

It should be noted that, on 11 November 2010, a “€ 140,000,000 1.75 per cent. Equity-Linked Bonds due 2013” maturing 1 October 2013 was issued and placed on the Luxembourg Stock Exchange’s EURO MTF market on 21 January 2011. The bond issue became convertible into ordinary Hera shares on 27 January 2011 following the approval by the extraordinary shareholders' meeting of the share capital increase with exclusion of the purchase option.

In relation to the puttable loans, the options expiring in 2010 were not exercised. As a result, the € 100 million Put Bond with maturity in November 2020 no longer contains any options, thus representing, for all intents and purposes, a plain vanilla bond, while future maturities in respect of exercising the option of two put loans of Euro 70 million each are placed until the end of 2012.

The puttable bonds and loans incorporate put options which meeting the criteria to be independently valued according to the instructions given in IAS 39, paragraph AG30, letter g.

The loans in place as at said date do not provide for financial debt covenants, apart from the corporate rating limit by only one Rating Agency that is lower than “Investment Grade” level (BBB-).

As at 31 December 2010, short term loans totalled Euro 147,837 thousand (Euro 113,039 thousand as at 31 December 2009) and include payables to banks and other lenders.

Liquidity risk

Liquidity risk consists of the impossibility to cope with the financial obligations taken on due to a lack of internal resources or an inability to find external resources at acceptable costs. Liquidity risk is mitigated by adopting policies and procedures that maximise the efficiency of management of financial resources. For the most part, this is done with the centralised management of incoming and outgoing flows (centralised treasury service); in the perspective assessment of the liquidity conditions; in obtaining adequate lines of credit; and preserving an adequate amount of liquidity.

Current cash, cash equivalents, and credit facilities, in addition to the resources generated by the operating and financing activities, are deemed more than sufficient to meet future financial needs. In particular, as at 31 December 2010, there are unused credit lines totalling more than Euro 1,300 million.

« back