Econocom - 2020 annual report

06 consolidated financial statements

notes to the consolidated financial statements

Convertible bonds In March 2018, Econocom group issued OCEANE bonds in the amount of €200 million (€198.4 million after allocation of issue costs). Their main characteristics

Non-convertible bonds Euro PP

In May 2015, Econocom group SE took part in a €101 million bond issue (Euro PP) with eight institutional investors. The issue was in two tranches of €45.5 and €55.5 million, with respective maturities of five and seven years. They pay fixed-rate interest (2.364% in five years and 2.804% in seven years) and are redeemable upon maturity ( in fine ). In June 2020, the Group repaid the first instalment. Schuldschein In late November 2016, Econocom group SE issued €150 million in Schuldschein notes on the Frankfurt market. These notes, redeemable at maturity, comprise three tranches: €13 million at seven years, and €22 million and €115 million at five years. Notes belonging to the first two tranches pay fixed-rate interest (2.088% at seven years and 1.611% at five years). The interest on the third tranche includes a fixed-rate portion of 1.5% and a floating-rate portion indexed to six-month EURIBOR. An interest rate swap was put in place in respect of these notes to protect the Group against the interest rate risk on the floating-rate portion. The swap hedges the risk of a rise in interest rates; however, it provides that if EURIBOR is negative, Econocom bears theinterest rate risk.

are detailed below: maturity: five years; • annual coupon: 0.5%; • issue price: €8.26. •

If these bonds are not converted, they will be redeemed in cash on 6 March 2023 at a price of €8.26. OCEANE bonds are compound instruments within the meaning of IAS 32. The characteristicsof the OCEANEbonds provide for the possibility of conversion into a fixed number of shares for a fixed amount of cash. An equity component has been calculated by subtracting the debt component of the OCEANE, measured at the rate of the debt without a conversionoption, in applicationof sections 29–30 of IAS 32, which define the “equity” component as residual. On initial recognition,and net of issue costs, the equity component amounted to €16.7 million and the debt component to€181.7million. In November 2020, the Econocom group bought back convertible bonds (OCEANEs) for a total amount of €9.7 million.As a result, the “debt” component was derecognised against the cash paid for repayment, the differencebeing recognisedin the statement of financial position for an amount of €0.9 million.The “Equity” component initially recognised and representing the premium sold attaching to the conversion option, is vested by the issuer and remains recognised in equity.

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2020 annual report