Annual Report 2009 Royal BAM Group nv

19.5 Other project finance
Other project loans are also contracted to finance land for property development and ongoing property development
projects. The average term of other project financing is approximately 2.5 years.
Interest on these loans is predominantly variable, based on EURIBOR / LIBOR plus a margin. Interest margins of these loans
do not depend on market fluctuations during the term of these loans.
Not only the assets in question constitute a security for lenders; there are also additional (limited) securities. The carrying
amount of the related assets amounts to approximately €390 million at year-end 2009 (2008: approximately €315 million).
These loans will be repayable on demand if the agreed qualitative and quantitative conditions as regards interest and
capital repayments, amongst others. are not met.
Please refer to the Other information in this note for further information on the set standards and realisation of these
conditions.
19.6 Bank financing
A loan of €360 million was contracted with a consortium of banks in June 2009. The proceeds of the loan were used to
prematurely repay the old Terra Amstel and AM loans, which were contracted for the acquisition of AM. The principal
amount of this loan has to be repaid in April 2012.
The interest of the new loan is based on the Group’s recourse leverage ratio and is equal to EURIBOR plus a margin, which
can vary between a minimum of 205 and a maximum of 280 basis points. The margin was 230 basis points at 31 December
2009.
Commencing in June 2009, an interest rate swap was contracted to hedge the interest risk on the loan. The interest rate
swap fixes EURIBOR at 2.24 percent. Including a margin at year-end 2009, the interest for this loan consequently amounts
to 4.54 percent.
The same ratios apply to the subordinated loan of €200 million and to the bank loan. The Group provides securities for this
loan by way of guarantees from the major subsidiaries.
Please refer to the Other information in these notes for further information on the set standards and realisation of these
conditions.
19.7 Terra Amstel Loan
The Terra Amstel loan, which was contracted in 2006 for the acquisition of AM, was repaid in June 2009 from proceeds of
the new bank loan.
At year-end 2008, the carrying amount of the loan was €137.5 million and the interest rate was six-months EURIBOR plus
95 basis points. An interest rate swap for the original sum of €175 million fixed EURIBOR at 4.5 percent. In June 2009, the
interest rate swap was sold with a negative result of €3.4 million. Please refer to Note 20 and 28.
19.8 AM Loan
This credit facility, which was contracted in 2006 for the acquisition of AM, was repaid in June 2009 with the proceeds of
the new bank financing. At year-end 2008, €220 million of this credit facility was drawn down at an interest rate of
EURIBOR plus 75 basis points. An interest rate swap for an amount of €50 million fixed EURIBOR at 3.6 percent. The interest
rate swap ended on its repayment date.
19.9 Third party shareholders in AM
A consortium of investors led by ING Corporate Investment Participations bv obtained an interest in shares worth €49
million (49 percent) in Terra Amstel Holding bv, through the Houdstermaatschappij Terra Amstel Holding bv (HTAH) for
the acquisition of AM in 2006. As HTAH has rights to a fixed compensation of 8.9 percent per annum, these shares are
recorded as liabilities.
In March 2009, the Group exercised its contractually agreed right to purchase the remaining 49 percent interest in Terra
Amstel Holding bv. The carrying value of the interest was €49 million.
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2009