23. Borrowings


Carrying amount

Fair value

Year of
maturity

Interest
rate

(in thousands of euros)

2018

2017

2018

2017

EMTN programme

1,839,429

1,363,399

2,005,400

1,539,896

2019-2038

1.12%-4.97%

European Investment Bank

482,500

491,500

542,377

560,604

2024-2031

2.12%-4.14%

KfW IPEX-bank

99,809

99,772

111,438

113,240

2024

2.80%

Schuldschein

60,979

60,822

64,454

67,960

2019

5.50%-5.75%

Namensschuldverschreibung

24,839

24,799

30,666

31,686

2023

5.07%

Other borrowings

59,334

69,555

59,334

69,540

Total

2,566,890

2,109,847

2,813,669

2,382,926

Currency

Face value

Carrying amount

Fair value

Year of
maturity

Interest
rate

(in thousands of euros)

2018

2017

2018

2017

XS1900101046

EUR

500,000

491,738

-

507,500

-

2030

1.50%

XS0621167732

EUR

438,447

430,075

426,487

481,722

500,478

2021

4.43%

XS1301052202

EUR

400,000

404,229

404,720

428,832

434,440

2026

2.00%

XS0378569247

JPY

20,000,000

158,731

147,617

219,024

197,271

2038

3.16%

XS1437013870

EUR

150,000

149,775

149,745

149,522

146,838

2028

1.12%

XS0459442710

EUR

85,000

84,986

84,969

88,129

93,370

2019

4.97%

XS0459479399

EUR

50,000

49,983

49,963

51,761

54,895

2019

4.94%

XS0983151282

EUR

40,000

39,954

39,948

45,258

46,555

2025

3.08%

XS0997565436

EUR

30,000

29,959

29,953

33,652

34,501

2025

2.94%

XS0167622454

EUR

30,000

-

29,997

-

31,548

2018

5.16%

EMTN programme

1,839,429

1,363,399

2,005,400

1,539,896

The fair value is estimated by discounting the future contractual cash flows at current market interest rates available to the borrower for similar financial instruments. For loans that are actively traded in a public market the quoted prices are used to calculate the fair value.

Schiphol Group has a Euro Medium Term Note (EMTN) programme, making it possible at present to raise funds of up to 3.0 billion euros as required, provided the prospectus is updated annually. The prospectus was updated in 2018. The covenants of the EMTN programme provision that a 'change of control' in combination with a 'downgrade below investment grade' triggers early redemption. There was no obligation to do so in 2018.

At year-end 2018, borrowings under the programme totalled 1,839 million euros (31 December 2017: 1,363 million euros). In 2018 Schiphol Group issued 500 million euros in green bonds to invest in the sustainability of its airports. The senior unsecured bonds are due 5 November 2030 and carry an annual coupon of 1.5%.

Schiphol Group has two facility agreements with the European Investment Bank for a total of 550 million euros, which have been drawn in full (and of which 67.5 million euros has since been repaid). Schiphol Group could be obliged to redeem the loan early if (in addition to the usual circumstances) other loans are repaid early or equity declines below 30% of total assets. Additional security will be demanded if the credit rating drops to BBB or lower (S&P) or to Baa2 or lower (Moody’s). The loan agreement also contains a ‘change of control’ clause.

Schiphol Group entered into an agreement with KfW IPEX-Bank for a facility of 100 million euros, which was fully drawn in 2014 and has a maturity of ten years. Schiphol Group has issued two Schuldschein notes (fixed-interest loans with terms of seven and ten years) with a nominal value of 61 million euros (31 December 2017: 61 million euros). Both notes will be redeemed in the first half of 2019. In principle, the Schuldschein documentation includes the same covenants as the EMTN programme.

In 2017 Schiphol Group entered into a new agreement with the European Investment Bank for a total facility of 350 million euros to finance the development of the new pier and terminal, comprising a committed tranche of 175 million euros and an uncommitted tranche of 175 million euros. In addition, Schiphol Group has a Euro-Commercial Paper (ECP) programme with a limit of 750 million euros. As per 31 December 2018 no use has been made of these two facilities.

Borrowings under the EMTN programme, the ECP programme, the EIB facility and the KfW facility are not subordinate to other liabilities.

Schiphol Group has access to a 300 million euro syndicated and committed facility with a term to June 2022. Schiphol Group also has access to a bilateral committed facility of 100 million euros agreed with Bank Nederlandse Gemeenten with a maturity to 1 January 2020. In addition, Schiphol Group holds two bilateral uncommitted facilities of 75 million euros each. Eindhoven Airport has a facility for 36 million euros, of which 12 million euros had been drawn as at 31 December 2018.

Of the total loans, an amount of 158.7 million euros has been drawn in Japanese yen (JPY 20 billion). In line with the financial risk management policy, a combined cross-currency swap has been contracted on the JPY loan to hedge the exchange rate risks relating to this loan. 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 and/or fixed interest rates. All hedging transactions are accounted for as cash flow hedges and are fully effective.

The current portion of borrowings at 31 December 2018 of 200.7 million euros (31 December 2017: 35.2 million euros) is recognised under current liabilities.

In 2018 Schiphol Group met the agreed covenants included in the various contracts.

The average interest rate of outstanding borrowings in 2018 was 3.0% (2017: 4.1%).

The remaining terms of the borrowings as at 31 December 2018 are as follows:

(in thousands of euros)

Total

<= 1 year

> 1 year

> 1 year and
<= 5 years

> 5 years

EMTN programme

1,839,429

130,917

1,708,512

433,395

1,275,116

European Investment Bank

482,500

9,000

473,500

36,000

437,500

KfW IPEX-bank

99,809

-38

99,847

-150

99,997

Schuldschein

60,979

60,979

-

-

-

Namensschuldverschreibung

24,839

-39

24,877

24,877

-

Other borrowings

59,334

-165

59,499

59,499

-

Total borrowings

2,566,890

200,655

2,366,235

553,622

1,812,613

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 1 January 2017

2,010,773

4,927

2,015,700

Movements in 2017

New borrowings

118,845

-

118,845

Fair value movement

4,950

-

4,950

Transferred to current liabilities

-44,727

44,727

-

Repayments

-

-18,727

-18,727

Exchange differences

-14,800

-

-14,800

Other movements

-414

4,293

3,879

Total movements in the year

63,854

30,293

94,147

Carrying amount as at 31 December 2017

2,074,627

35,220

2,109,847

Movements in 2018

New borrowings

491,620

-

491,620

Fair value movement

2,621

-

2,621

Transferred to current liabilities

-213,736

213,736

-

Repayments

-

-52,000

-52,000

Exchange differences

11,103

-

11,103

Other movements

-

3,699

3,699

Total movements in the year

291,608

165,435

457,043

Carrying amount as at 31 December 2018

2,366,235

200,655

2,566,890

For more details regarding the fair value movement, please refer to note 29. Management of financial risks and financial instruments.

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24. Employee benefits