Annual Report 2012 - ORCO Germany

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C u r re n t fin a n c ia l d e b ts
F ix e d R a te b o n d s
B a la n c e a t 3 1 D e c e m b e r 2 0 1 1 9 7 ,7 7 6
In te re sts 2 ,3 2 3
R e d e m p tio n p rem iu m 2 5 ,0 2 5
C o u p o n c a p ita liz e d in 2 0 1 2 4 ,0 0 4
O w n b o n d s re ce ive d in c o n n e ctio n w ith C a p ita l In crea se d a te d S e p te m b e r 2 7 ,2 0 1 2 ( 1 0 9 ,1 2 9 )
B a la n c e a t 3 1 D e c e m b e r 2 0 1 2 2 0 ,0 0 0
On May 9, 2012, approximately 85% of the OG Bonds were exchanged for convertible bonds (Obligations Convertibles en Actions) to be issued by
OPG. As a result of this exchange, OPG received OG Bonds, which were contributed to the Company as described in note 24.
As at September 27, 2012, as part of the capital increase, 125,130 bonds were contributed to Orco Germany by Orco Property Group and OPG
related entities, representing 84.5% of the outstanding number of bonds.
As a result of the bond’s restructuring these bonds held by OG’s parent company have to be converted into 28 million new OG share. It is expected to
occur in the first half of 2013.
As at 31 December 2012, the remaining bond debt in OG amounts to EUR 20.0 million.
The parent company OPG is holding 550,000 warrants (550,000 in 2011) ,Orco Germany Investments S.A., a subsidiary of the Company, owned
2,397,311 warrants and Orco Grundstueck GmbH owned 1,150,000 warrants.
As at December 31, 2012 and 2011, no warrant attached to the bonds (“BSAR”) have been exercised.
16.3. Derivatives
3 1 D e c e m b e r 3 1 D e c e m b e r
2 0 1 2 2 0 1 1
In te res t rate d e riv a tive s - -
T o ta l c u rre n t a s se ts
E m b e d d e d d e riva tive s o n b o n d s 0 2 2 ,9 1 4
T o ta l n o n -c u rre n t lia b ilitie s 0 2 2 ,9 1 4
In te res t rate d e riv a tive s 4 ,5 2 1 6 ,9 2 8
T o ta l c u rre n t lia b ilitie s 4 ,5 2 1 6 ,9 2 8
N e t d e riva tiv e s (4 ,5 2 1 ) (2 9 ,8 4 2 )
Derivative instruments are presented within others current assets when their fair value is positive, within other current or non-current liabilities when
their fair value is negative. Changes in the fair value are recognized immediately in the income statement under other financial results (see note 3.2).
Derivatives used by the Group include interest rate derivatives and embedded derivatives on bonds.
Interest rate derivatives mainly represent interest rate swaps and collars. Interest rate swaps are agreements between two parties to exchange a
series of interest payments on a common principal amount. A collar is an investment strategy that uses options to limit the possible range of positive
or negative returns on an investment in an underlying asset to a specific range. Valued at their fair value, interest rate swaps and collars cover floating
interest rates against fixed rates.
The Group uses various types of interest rate derivative contracts to protect against unpredictable cash disbursements linked to its assets and
liabilities due to fluctuations in interest rates. As at 31 December 2012, the total debt covered by interest rate swaps and collars amounts to
EUR 290.3 million (EUR 333.1 million in 2011). It represents 100% of the floating rate debt (78.3% in 2011).
16.4. Net interest expenses
31 December 2012 31 December 2011
Interest income 2,064 2,170
Interest expenses (23,624) (33,051)
ANNUAL CONSOLIDATED FINANCIAL STATEMENTS | 37
Net interest expenses (21,560) (30,881)