GECINA - REFERENCE DOCUMENT 2017
04
ANNUAL FINANCIAL STATEMENTS Notes to the annual financial statements at December 31, 2017
Bank covenants The company’s main credit facilities are accompanied by contractual clauses relating to compliance with certain financial ratios (calculated on consolidated figures), determining interest rates charged and early repayment clauses, the most restrictive of which are summarized below: Balance at 12/31/2016 Net debt/revalued block value of property holding (excluding duties) Maximum 55% / 60% 42.4% 29.4% EBITDA (excluding disposals)/net financial expenses Minimum 2.0x 5.6x 4.9x Outstanding secured debt/revalued block value of property holding (excluding duties) Maximum 25% 3.6% 6.5% Revalued block value of property holding (excluding duties) in € billion Minimum 6.0 / 8.0 19.6 12.2 Benchmark standard Balance at 12/31/2017
Change of control clauses For all the bonds a change of control leading to the downgrading of Gecina’s credit rating to “Non-Investment Grade”, not raised to “Investment Grade” within 120 days, can lead to early repayment of the loan.
Exposure to interest rate risks
4.3.4.9
Debt after hedging at 12/31/2016
Debt before hedging at 12/31/2017 2,633,825 3,844,600 6,478,425
Debt after hedging at 12/31/2017
Effect of hedging at 12/31/2017
In €’000
Floating rate financial debt Fixed rate financial debt
(925,000) 925,000
- -
1,708,825
266,075
4,769,600 3,093,400 6,478,425 3,359,475
INTEREST-BEARING FINANCIAL DEBT (1)
Gross debt excluding accrued interest, bank overdrafts and Group debts. (1)
DERIVATIVE PORTFOLIO
12/31/2016
12/31/2017
In € ’000
Derivatives in effect at year-end Fixed rate swaps
300,000 625,000
450,000 625,000 400,000 1,475,000
Caps ( purchases ) Floating rates swaps
SUB-TOTAL
925,000
Derivatives with deferred impact (1) Fixed rate swaps
150,000 150,000
SUB-TOTAL
TOTAL
925,000 1,625,000
Including nominal changes on derivatives in portfolio at closing. (1)
All financial instruments are interest rate risk hedging instruments and no transactions are isolated open positions. The fair value of the derivatives portfolio as at December 31, 2017 shows an unrealized termination loss of €7 million.
Hedging instruments were restructured during the fiscal year, leading to financial expenses of €12 million.
120 GECINA - REFERENCE DOCUMENT 2017
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