5. CAPITULO V FORMA EN QUE SE REALIZA EL DESPLAZAMIENTO
5.2 RELACIÓN ENTRE DESPLAZAMIENTO Y LA TIERRA EN EL CONFLICTO
The breakdown of bonds and other non-current liabilities is as follows.
31 December 2015 31 December 2014
€ million € million
Parent Company bond (USD) issued in 2003 185.6 167.5
Parent Company bond (Eurobond) issued in 2009 - 352.4
Parent Company bond (Eurobond) issued in 2012 396.2 395.2
Parent Company bond (Eurobond) issued in 2015 594.1 -
Private placement issued by Campari America in 2009 100.2 171.7
Total bonds and private placement 1,276.1 1,086.8
Payables and loans due to banks 4.4 9.0
Property leases 2.0 1.3
Derivatives on Parent Company bond (USD) 10.3
Payables for put options and earn-outs 1.0 1.3
Non-current financial liabilities 7.4 21.8
Other non-financial liabilities 3.1 4.0
Other non-current liabilities 10.5 25.8
Bonds
The bonds item included the following issues placed by the Parent Company.
The first, with a residual nominal value of USD 200 million, was placed on the US institutional market in 2003. The transaction was structured in two tranches of USD 100 million and USD 200 million, maturing in 2015, (the bond was settled at an equivalent value of € 86.0 million in July 2015) and 2018 respectively, with a bullet repayment at maturity and interest paid six-monthly at a fixed rate of 4.63%.
The second issue (Eurobond 2009) was launched on the European market in October 2009, and was aimed at institutional investors, with most of the bonds being placed with investors in Italy, the UK, France, Germany and Switzerland. The nominal value of this issue is € 350 million; it matures on 14 October 2016 and was placed at an agreed price of 99.431%. The coupons are paid annually at a fixed rate of 5.375%. The gross return on the bond is therefore 5.475%. The balance at 31 December 2015 was classified under short-term receivables.
The third bond (Eurobond 2012) was issued on 18 October 2012 in order to finance the acquisition of J. Wray & Nephew Ltd
.
It has a duration of seven years and a nominal value of € 400 million, with maturity on 25 October 2019. The bond pays a fixed annual coupon of 4.5% and the issue price was 99.068% of par, corresponding to a gross return of 4.659%. The fourth Euro-denominated issue (Eurobond 2015) was placed on the European market and matures on 30 September 2020. The offer, which was aimed solely at institutional investors, was placed at 99.715% of par. Coupons are payable at a nominal fixed interest rate of 2.75%. The gross return on the bond is therefore 2.81%.
The Parent Company has put in place various instruments to hedge the exchange rate and interest rate risks.
A cross currency swap hedging instrument was taken out on the 2003 issue to offset the risks related to fluctuations in the US dollar and movements in interest rates, which changes the US dollar-based fixed interest rate to a variable euro rate (6-month Euribor + 60 basis points).
On the same issue, various interest rate swaps were put in place involving the payment of an average fixed rate of 4.25% on underlying USD 150 million (maturing in 2018).
The changes in the item in 2015 relate to the following:
the valuation of existing hedging instruments relating to the 2003 issue (USD), including the impact on transactions settled during the year with the payment of the maturing tranche (a positive impact of € 19.8 million on the fair value
hedge and a positive impact of € 2.8 million on the cash flow hedge) and the effects of the hedges and the amortized cost on the bonds (negative at € 18.0 million);
the valuation of hedging instruments relating to the Eurobond issued in 2009, which were terminated early in 2012 (the positive effect of € 4.6 million was partially realized in 2015), and the effects of the amortized cost (which were negative at € 0.7 million).
the payable for the Eurobond 2009, which matures in 2016, was reclassified under current financial liabilities (see item for further details);
the effects of the amortized cost (negative at € 1.0 million) of the Eurobond issued in 2012. For more information on these changes, see note 46 - ‘Assets and liabilities measured at fair value’.
Private placement
The private placement item includes a bond issue placed by Campari America on the US institutional market in June 2009 with an original nominal value of USD 250 million. The transaction was structured in three tranches with bullet maturities of USD 40 million, which matured and was settled in the first half of 2014, USD 100 million, maturing in 2016 and USD 110 million, maturing in 2019. The six-monthly coupons are based on fixed rates of 7.50% and 7.99%.
Changes in value during the year were due to the reclassification of the tranche due to expire in 2016, of € 91.6 million, under current financial payables, and to the depreciation of the US dollar, the subsidiary's functional currency, which led to an increase in the total payable of € 19.9 million.
Payables and loans due to banks
This item includes euro-denominated loans entered into with leading banks and maturing at the end of 2019; interest is mainly due at floating market rates. The portion of these falling due within 12 months (€ 4.0 million) is classified under short-term bank loans; further details are given in Note 38 - ‘Payables to banks and other short-term financial payables’. These loans are secured by mortgages on properties in Caltanissetta for an amount of € 5.1 million.
Leases
This item included payables relating to the purchase of industrial land and buildings in Finale Emilia, worth € 1.3 million, of which € 1.2 million falls due after 12 months. This financing was secured on the leased properties. The item also included payables relating to the purchase of vehicles totaling € 0.9 million, of which € 0.8 million falls due after 12 months.
Payables for put options and earn-outs
At 31 December 2015, the long-term portion of the item 'Payables for put options and earn-outs' included the best estimate of the payment of an annual earn-out agreed as part of the purchase of the Sagatiba brand, to be paid over eight years after the closing.
Interest rates and maturities
The table below showed a breakdown of the Group's main financial liabilities, together with effective interest rates and maturities. It should be noted that, as regards the effective interest rate of hedged liabilities, the rate reported included the effect of the hedging itself. Furthermore, the values of hedged liabilities are shown here net of the value of the related derivative, whether it is an asset or liability.
Effective interest rate Maturity 31 December 2015 31 December 2014
€ million € million
Payables and loans due to banks Variable Euribor + 115-200 basis points 2016-2019 33.6 45.7
Parent Company bond issues
- issued in 2003 (in USD) fixed rate from 4.03% to 4.37% (1) 2018 176.1 263.7
6-month € LIBOR + 60 basis points(2)
- issued in 2009 (Eurobond) fixed rate 5.375% 2016 353.2 357.0
- issued in 2012 (Eurobond) fixed rate 4.5% 2019 396.2 395.2
- issued in 2015 (Eurobond) fixed rate 2.75% 2020 594.1 -
Private placement:
- issued in 2009 fixed rate 7.50%, 7.99% 2016-2019 191.8 171.7
Property leases Euribor + 133 basis points 2016-2026 2.1 1.3
(1) Rate applied to the portion of the bond hedged by an interest rate swap, corresponding to a nominal value of € 120 million. (2) Rate applied to the portion of the bond hedged by an interest rate swap, corresponding to a nominal value of € 43 million.
consolidated financial statements
Other non-financial liabilities
Other non-financial liabilities totaled € 3.1 million at 31 December 2014 (€ 4.0 million at 31 December 2014), and included amounts due from the Parent Company and some subsidiaries for fines and interest of € 0.6 million, and long-term liabilities accrued by Group companies on behalf of employees of € 2.5 million.