Boskalis_Annual_Report_2016

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24. INTEREST-BEARING BORROWINGS

31 DECEMBER 2016

2015

NON-CURRENT LIABILITIES US Private Placements

711,575 196,897

306,876

Revolving multi-currency credit facility

-

1,411

Other interest-bearing loans

5,762

914,234

308,287

CURRENT LIABILITIES US Private Placements

-

452,851

Other interest-bearing loans

18,127 18,127

293

453,144

US private placements relates to two placements of in total EUR 759.7 million (2015: EUR 711.6 million), calculated at year-end currency rates.

ƒ One concerns a US private placement of USD 433 million and GBP 11 million with institutional investors in the United States and the United Kingdom in July 2010. The placement consists of three tranches with an original duration of 7, 10 and 12 years, respectively. In December 2016 the Group informed the noteholders that this US private placement will be repaid early in January 2017. Both the loan and the accrued liabilities including the make-whole payments due to the noteholders (see note 11 ‘Finance income and expenses’) are accounted for as interest-bearing borrowings under current liabilities. The US dollar and GBP proceeds from this US private placement have been swapped into euros, for a total amount of EUR 354 million, through cross-currency swaps. The unchanged fixed interest rate amounts to 4.76%. As a result of early repayment, these cross-currency interest rate swaps no longer qualified for hedge accounting and the fair value has been accounted for in the 2016 statement of profit or loss (see note 11 ‘Finance income and expenses’). ƒ The second placement amounting to USD 325 million was placed with institutional investors in July 2013. The principal of this placement will be repaid after the original duration of ten years. The annual interest rate is 3.66%. A revolving multi-currency credit facility agreed with a bank syndicate was arranged for the Group in 2014 and amounts to EUR 600 million. This credit facility had an original duration of 5 years with two options, executed in 2015 and 2016, respectively and has therefore been extended to 2021. Following the repayment in the first quarter of USD 215 million (EUR 199 million) the Group did not draw on this credit facility in 2016. The Group agreed to comply with a number of customary covenants with the bank syndicate and US private placement holders. Twice a year Boskalis provides a compliance certificate to these lenders, reporting on the covenants for the twelve-month period ending on 30 June and 31 December, respectively. The main financial covenants are a net debt / EBITDA ratio not exceeding 3 and an EBITDA / net interest ratio of at least 4. These covenants are calculated in accordance with definitions agreed with the lenders. In the event that the group does not meet any of these covenants, the loan may be due immediately. These covenants were met at 31 December 2016. The net debt / EBITDA ratio was -0.3 (2015: 0.4) and the EBITDA / net interest ratio was 15 (2015: 27). Interest rates, remaining terms and currencies of the interest-bearing borrowings are disclosed in the explanatory notes to the financial instruments in the interest rate risk paragraph. As at 31 December 2016 the weighted average interest rate for the non-current portion of the interest bearing loans was 3.37% (2015: 3.48%). The non-current portion of other interest-bearing loans due after more than five years amounted to EUR 306.9 million (2015: EUR 344.9 million).

ANNUAL REPORT 2016 – BOSKALIS FINANCIAL STATEMENTS 2016