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Annual Statements

Home Annual Statements Financial Statements 2013 Notes to the consolidated financial statements Notes to the consolidated balance sheet Borrowings

30. Borrowings

(in thousands of euros)

Year redeemable

Interest rate

Currency

Nominal
value
(X 1000)

Hedging reference

2013

2012

XS0171966269

2013

4.38%

EUR

175,929

-

175,848

XS0399674216

2014

6.63%

EUR

370,704

B

370,634

369,885

XS0495479555

2016

4.46%

EUR

50,000

49,957

49,942

XS0459479472

2016

4.28%

EUR

15,000

14,966

14,953

XS0167622454

2018

5.16%

EUR

30,000

29,969

29,961

XS0459479399

2019

4.94%

EUR

50,000

49,882

49,862

XS0459442710

2019

4.97%

EUR

85,000

84,901

84,884

XS0621167732

2021

4.43%

EUR

438,447

412,136

408,548

XS0378569247

2038

3.16%

JPY

20,000,000

A

137,686

174,439

XS0983151282

2025

3.08%

EUR

40,000

39,921

-

XS0997565436

2025

2.94%

EUR

30,000

29,931

-

EMTN programme

1,219,983

1,358,322

Namensschuld- verschreibung

2023 (since 2013)

5.07%

EUR

25,000

24,643

- 100

XF0000NS4ET7

2016

5.38%

EUR

84,000

83,858

83,789

XF0000NS4FH9

2016

5.45%

EUR

40,000

39,963

39,946

XF0000NS4FX6

2016

5.16%

EUR

10,000

9,991

9,987

XF0000NS4DN2

2019

5.75%

EUR

50,000

49,353

49,226

XF0000NS4PP1

2019

5.50%

EUR

11,000

10,843

10,813

Schuldschein

194,008

193,761

2009-0720

2031

3.95%

EUR

180,000

157,500

166,500

2012-0681

2025

2.12%

EUR

170,000

170,000

-

European Investment Bank

327,500

166,500

Handelsbanken

2016

Euribor + opslag

EUR

109,468

D,E,F,I

109,266

109,186

AREB CV loans

109,266

109,186

(in thousands of euros)

Year redeemable

Interest rate

Currency

Nominal
value
(X 1000)

Hedging reference

2013

2012

Avioport phase 2

2014

Euribor+mark-up

EUR

21,750

14,395

14,395

Avioport phase 1

2014

Euribor+mark-up

EUR

28,000

28,000

28,000

Eindhoven Airport

15,000

15,000

-

Other

2,059

16,157

Other borrowings

59,454

58,552

Total borrowings

1,934,854

1,886,220

The current portion of borrowings at 31 December 2013, of 420.4 million euros (31 December 2012: 191.5 million euros), is recognised under current liabilities.

Schiphol Group launched a Euro Medium Term Note (EMTN) programme in 1999, making it possible to raise funds of up to 2.0 billion euros as required, provided the prospectus is updated annually. The prospectus was updated in 2013. At year-end 2013, borrowings under the programme totalled 1,220.0 million euros (31 December 2012: 1,358.3 million euros). Schiphol Group could be obliged to redeem the notes early in the event of specific circumstances commonly stipulated for this type of instrument. There was no obligation for this in 2013.

In June 2008, Schiphol Group launched a Euro Commercial Paper (ECP) programme with a limit of 750 million euros in addition to the existing EMTN programme. On 31 December 2013, no short-term loans were outstanding under the ECP programme.

Schiphol Group has drawn a Namensschuldverschreibung (registered bond) that guarantees funding of 25 million euros from 2013 at a fixed rate of interest (5.072%).

Schiphol Group has issued Schuldschein notes (fixed-interest loans with terms of 7 and 10 years) with a nominal value of 195 million euros. In principle, the Schuldschein documentation includes the same covenants as the EMTN programme and provisions on ‘change of control’ in combination with a ‘downgrade below investment grade’ on early redemption.

In 2010, Schiphol Group obtained a facility of 350 million euros from the European Investment Bank. In 2013 a withdrawal of 170 million euros was made , after which the maximum amount of 350 million euros has been drawn from this facility (of which 22.5 million euros has since been repaid). Schiphol Group could be obliged to redemption early if (in addition to the usual circumstances) other loans are repaid early or equity declines below 30% of total assets. Additional collateral will be demanded if the credit rating is BBB or lower (S&P) or Baa2 or lower (Moody’s). The loan agreement also contains a ‘change of control’ clause.

In 2013 Schiphol Group entered into a further agreement with the European Investment Bank for a facility of 200 million euros in addition to its 350 million euros facility with the European Investment Bank. The terms of the loan are similar to those for the 350 million euros European Investment Bank facility. This loan has not been drawn on.

Schiphol Group also entered into an agreement with KfW IPEX-Bank for a facility of 150 million euros. This loan has not been drawn on at year end, however, commitment was entered into to draw 100 million euros in mid-January 2014. Two private placements of 40 million euros and 30 million were made under the EMTM programme, each with a term of 12 years. 

Borrowings under the EMTN programme, the ECP programme, the EIB facility and the KfW facility are not subordinate to other liabilities and are eligible for voluntary early redemption.

AREB C.V. has a revolving credit facility of 195 million euros from Svenska Handelsbanken, with a remaining term of two years and six months. To date, 179 million euros have been drawn on this facility (Schiphol Group’s proportional share amounted to EUR 109.5 million). The loan is a mortgage and subject to mandatory early repayment if the amount of the loan exceeds 60% of the appraised value of the financed properties. To provide collateral for the repayment, AREB C.V. has granted Svenska Handelsbanken a pledge of the receivables relating to the leasehold and rental rights enjoyed by AREB C.V. vis-à-vis the tenants of the properties in its portfolio at the reporting date. AREB C.V. has also pledged all existing and future rent receivables relating to the property that are already available for pledging. Furthermore, AREB C.V. has pledged all claims and all rights derived from insurance policies with respect to the properties.

Avioport SpA (a 70% subsidiary of Schiphol Group) has a mortgage from Banca Popolare Italiana for a total amount of EUR 49.8 million (EUR 28.0 million for phase 1 and EUR 21.8 million for phase 2) with a term to 30 June 2014. 42.4 million euros of this mortgage had been drawn at 31 December 2013 (28.0 million euros for phase 1 and 14.4 million euros for phase 2). The collateral for phase 1 consists of the buildings, shares and rental income, while the collateral for phase 2 is the entire project.

Schiphol Group has access to a 300 million euros syndicated and committed facility with a term to 2016. This facility has not been drawn on. Schiphol Group also has access to a bilateral committed facility of 100 million euros with a term to 1 January 2015 agreed with Bank Nederlandse Gemeenten. This facility has also not been drawn on.

Of the total loans, 138 million euros have been drawn in Japanese yen (JPY 20 billion). In line with the financial risk management policy, interest rate swaps, currency swaps and in some cases combined cross-currency swaps have been contracted on the loans to hedge the risks inherent in exposure to movements in interest rates and exchange rates. In principle, the transactions concerned correspond to all relevant characteristics of the respective loans, such as maturity and amount and hedge the positions with respect to the euro or to either fixed or capped interest rates or both. All hedging transactions are accounted for as cash flow hedges.

The derivative financial instruments comprise the following contracts, with the references relating to various loans in the analysis of borrowings.

Interest

Notional
amount

Maturity

Fair value in thousands of euros

Reference

Counterparty

Type

rate

Currency

(x1000)

date

31 December 2013

31 December 2012

A

JPMorgan

Currency swap

3.16%

JPY

20,000,000

2038

- 1,668

- 22,851

RBS

Rate swap

4.03%

EUR

370,000

2024

-

74,612

B

RBS

Rate swap

4.03%

EUR

200,000

2024

33,429

-

JPMorgan

Rate swap

3.93%

EUR

150,000

2023

-

31,217

C

SHB

Rate swap

3.02%

EUR

24,461

2017

1,787

2,543

D

SHB

Rate swap

2.90%

EUR

24,461

2017

1,702

2,429

E

SHB

Rate swap

3.47%

EUR

24,461

2016

2,115

2,988

BPL

Rate swap

4.32%

EUR

21,000

2013

-

682

F

RBS

Forward

n.a.

AUD

99,200

2014

- 13,017

-

JPMorgan

Forward

n.a.

AUD

116,500

2013

-

903

G

SHB

Rate swap

0.80%

EUR

35,469

2016

223

493

Total

24,571

93,016

Recognised in the balance sheet under:

Non-current assets

- 1,668

- 22,851

Current assets

- 13,017

-

Non-current liabilities

5,827

114,281

Current liabilities

33,429

1,586

24,571

93,016

Schiphol Group’s risk in respect of the cross-currency swap (reference A) is mitigated by a cash collateral agreement with JPMorgan which results in a maximum net position for both parties that depends on the parties’ credit rating. If the credit rating of either party is reduced, the maximum net position for that party will also decrease. Under the cash collateral agreement, the difference between the market value of the swap and the applicable maximum net position is paid weekly through the bank.

At 31 December 2013, the maximum net position of both parties amounted to 10 million euros (10 million euros at 31 December 2012) while the market value of the swap was approximately 1.67 million euros (22.9 million euros at 31 December 2012) in Schiphol Group’s favour. At 31 December 2013 JPMorgan paid Schiphol Group 0 million euros (27.0 million euros at 31 December 2012) by way of collateral.

References B relates to a forward-starting interest-rate swap which principally fix the interest rates at which outstanding EMTN loans can be refinanced in 2014.

In 2013, a forward-starting interest rate swap of EUR 150 million was unwound and the forward-starting interest rate swap in reference B was partly unwound from its original amount of EUR 370 million to 200 million euros.

References C, D, E and G relate to four interest-rate swaps which fix almost all of the interest rates on AREB C.V.’s funding.

Reference H relates to the derivative financial instrument for hedging the translation differences on the Redeemable Preference Shares recognised as loans to associates.

The interest rates shown against the various currency, interest-rate and cross-currency swaps are the fixed rates at which interest is payable to the counterparty, for which interest at the variable (or fixed) rate that Schiphol Group in turn has to pay on the loans concerned is receivable from the counterparty.

The remaining terms of the borrowings at 31 December 2013 are as follows. The portion of the borrowings due within one year is recognised under current liabilities.

(in thousands of euros)

Total

<= 1 year

> 1 year

> 1 year but <= 5 years

> 5 years

EMTN programme

1,219,983

366,950

853,033

80,334

772,699

Namensschuldverschreibung

24,643

- 39

24,682

- 155

24,837

Schuldschein

194,008

- 247

194,255

133,275

60,980

European Investment Bank

327,500

9,000

318,500

36,000

282,500

KfW

- 375

- 188

- 187

- 150

- 37

AREB CV borrowings

109,266

-

109,266

109,266

-

Other borrowings

59,829

42,770

17,059

17,210

- 151

Total borrowings

1,934,854

418,246

1,516,608

375,780

1,140,828

The total carrying amount of the borrowings (at amortised cost) has the following fair value analysis:

(in thousands of euros)

Carrying amount as at
31 December 2013

Fair value as at
31 December 2013

EMTN programme

1,219,983

1,362,652

Namensschuldverschreibung

24,643

29,663

Schuldschein

194,008

219,194

European Investment Bank

327,500

325,107

KfW

- 375

-

AREB CV borrowings

109,266

115,426

Other borrowings

59,829

42,592

Total borrowings

1,934,854

2,094,634

(in thousands of euros)

Carrying amount as at
31 December 2012

Fair value as at
31 December 2013

EMTN programme

1,358,322

1,557,861

Namensschuldverschreibung

- 100

3,440

Schuldschein

193,761

242,042

European Investment Bank

166,500

204,999

AREB CV borrowings

109,186

115,282

Other borrowings

58,552

58,552

Total borrowings

1,886,221

2,182,176

Fair value is estimated by discounting the future contractual cash flows using the current market interest rates available to the borrower for similar financial instruments. The movements in borrowings during the year were as follows:

(in thousands of euros)

Borrowings > 1 year

Borrowings <= 1 year

Total

Carrying amount as at 31 December 2011

1,773,877

101,834

1,875,711

Movements in 2012

New borrowings

126,651

-

126,651

Accrued interest

78

-

78

Transferred to current liabilities

- 184,613

184,613

-

Repayments

-

- 94,937

- 94,937

Exchange differences

- 26,186

-

- 26,186

Other movements

4,904

-

4,904

Total movements in the year

- 79,166

89,676

10,510

Carrying amount as at 31 December 2012

1,694,711

191,510

1,886,221

Movements in 2012

New borrowings

271,758

-

271,758

Transferred to current liabilities

- 419,802

419,802

-

Repayments

-

- 191,664

- 191,664

Exchange differences

- 36,763

-

- 36,763

Other movements

4,555

747

5,302

Total movements in the year

- 180,252

228,885

48,633

Carrying amount as at 31 December 2013

1,514,459

420,395

1,934,854

Schiphol Group’s financial instruments comprise the borrowings and derivative financial instruments described in this note as well as the loans to associates (note 20), loans (note 21), trade and other receivables (note 24), cash and cash equivalents (note 25), a number of items in other non-current liabilities (note 34) and trade and other payables (note 36).