41 Non-derivative Financial Liabilities
Non-derivative Financial Liabilities
Dec. 31, 2021 | Dec. 31, 2022 | ||||||||
in € million | non-current | current | non-current | current | |||||
Non-derivative financial liabilities | |||||||||
Liabilities to banks | 16,997.3 | 4,266.1 | 17,086.4 | 1,021.4 | |||||
Liabilities to other creditors | 23,174.6 | 2,418.3 | 24,183.3 | 2,558.4 | |||||
Deferred interest from non-derivative financial liabilities | – | 172.7 | – | 210.2 | |||||
40,171.9 | 6,857.1 | 41,269.7 | 3,790.0 | ||||||
Accounting Policies
Vonovia recognizes non-derivative financial liabilities, which mainly include liabilities to banks and to investors, at their fair value on the day of trading, less the directly attributable transaction costs (this generally corresponds to the acquisition cost). These liabilities are subsequently measured at amortized cost using the effective interest method. Financial liabilities are derecognized when Vonovia’s obligations specified in the contract expire or are discharged or canceled.
Liabilities bearing no interest or interest below market rates in return for occupancy rights at rents below the prevailing market rates are recorded at present value.
Deferred interest is presented as current in order to show the cash effectiveness of the interest payments transparently. In principle, the deferred interest is part of the non-derivative financial liability. Of the deferred interest from non-derivative financial liabilities, € 173.8 million (December 31, 2021: € 166.2 million) is from bonds reported under non-derivative financial liabilities to other creditors.
The non-derivative financial liabilities developed as follows in the fiscal year under review:
Development of non-derivative financial liabilities in the fiscal year
in € million | As of | First-time consoli- dation | New loans | Scheduled repayments | Unscheduled repayments | Adjusted for effective interest method | Other adjustments | Exchange rate differences | As of | ||||||||||||
Bond (US dollar) | 219.3 | 13.9 | 233.2 | ||||||||||||||||||
Bond (SEK) | 121.2 | -8.4 | 112.8 | ||||||||||||||||||
Bond (EMTN) | 24,110.3 | -1,600.0 | -1,511.8 | 28.8 | -32.9 | 20,994.4 | |||||||||||||||
Bond (EMTN Green Bond) | 596.6 | 1,600.0 | -16.8 | 2,179.8 | |||||||||||||||||
Bond (EMTN Social Bond) | 2,400.0 | -20.0 | 2,380.0 | ||||||||||||||||||
Promissory note loan | 230.0 | 1,010.0 | -0.1 | 1,239.9 | |||||||||||||||||
Bridge financing | 3,481.6 | -3,490.0 | 8.4 | – | |||||||||||||||||
Commercial paper | 500.0 | -500.0 | – | ||||||||||||||||||
Mortgages | 8,126.7 | 1,132.0 | * | -514.3 | -188.5 | -38.2 | -0.7 | -106.6 | 8,410.4 | ||||||||||||
Deferred interest | 139.6 | 37.2 | 176.8 | ||||||||||||||||||
Deutsche Wohnen | |||||||||||||||||||||
Other financing*** | 10,091.8 | 40.0 | -302.3 | ** | -437.1 | -82.1 | -11.3 | 9,299.0 | |||||||||||||
Deferred interest | 33.1 | 0.3 | 33.4 | ||||||||||||||||||
47,029.0 | – | 6,803.2 | -6,406.6 | -2,137.4 | -114.5 | -7.4 | -106.6 | 45,059.7 | |||||||||||||
- * New mortgages include capitalized interest not affecting cash in the amount of € 0.5 million.
- ** Repayments include debt servicing not yet rendered not affecting cash in the amount of € 3.9 million.
- *** This includes mortgages, convertible bonds, registered bonds and bearer bonds.
The non-derivative financial liabilities developed as follows in the previous year:
Development of non-derivative financial liabilities in the previous year
in € million | As of | First-time consoli- dation | New loans | Scheduled repayments | Unscheduled repayments | Adjusted for effective interest method | Other adjustments | Exchange rate differences | As of | ||||||||||||
Bond (US dollar) | 202.0 | 17.3 | 219.3 | ||||||||||||||||||
Bond (EMTN) | 15,186.5 | 9,500.0 | -500.0 | -76.2 | 24,110.3 | ||||||||||||||||
Bond (EMTN Green Bond) | 600.0 | -3.4 | 596.6 | ||||||||||||||||||
Promissory note loan | 49.9 | 224.0 | -4.0 | -40.0 | 0.1 | 230.0 | |||||||||||||||
Bridge financing | 12,950.0 | * | -9,460.0 | * | -8.4 | 3,481.6 | |||||||||||||||
Mortgages | 8,531.2 | 12.3 | 523.2 | ** | -469.0 | *** | -287.3 | -24.2 | -123.7 | -35.8 | 8,126.7 | ||||||||||
Deferred interest | 115.1 | 24.5 | 139.6 | ||||||||||||||||||
Deutsche Wohnen | |||||||||||||||||||||
Other financing**** | 10,752.0 | 150.2 | -61.4 | -723.7 | -23.8 | -1.5 | 10,091.8 | ||||||||||||||
Deferred interest | 25.8 | 7.3 | 33.1 | ||||||||||||||||||
24,084.7 | 10,790.1 | 23,947.4 | -10,494.4 | -1,051.0 | -118.6 | -93.4 | -35.8 | 47,029.0 | |||||||||||||
- * This includes a short-term bridge financing from Société Générale of € 1,500.0 million.
- ** New mortgages include capitalized interest not affecting cash in the amount of € 2.1 million.
- *** Repayments include repayment grants or repayment waivers not affecting cash in the amount of € 11.4 million.
- **** This includes mortgages, convertible bonds, registered bonds and bearer bonds.
The U.S. dollar bond issued in 2013 is translated at the exchange rate at the end of the reporting period in line with applicable IFRS provisions. Allowing for the hedging rate prescribed through the interest hedging transaction entered into, this financial liability would be € 50.0 million (December 31, 2021: € 36.1 million) lower than the recognized value.
The maturities and average interest rates of the nominal obligations of the liabilities to banks and the liabilities to other creditors are as follows during the fiscal year:
Maturities and average interest rates of the nominal obligations of the liabilities to banks and the liabilities to other creditors in the fiscal year
Repayment of the nominal obligations is as follows: | ||||||||||||||||||||
in € million | Nominal obligation Dec. 31, 2022 | Maturity | Average interest rate | 2023 | 2024 | 2025 | 2026 | 2027 | from 2028 | |||||||||||
Bond (US dollar)* | 185.0 | 2023 | 4.58% | 185.0 | ||||||||||||||||
Bond (SEK)* | 48.5 | 2024 | 1.02% | 48.5 | ||||||||||||||||
Bond (SEK)* | 72.7 | 2027 | 1.47% | 72.7 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2025 | 1.50% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 876.8 | 2023 | 2.25% | 876.8 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2026 | 1.50% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 890.4 | 2024 | 1.25% | 890.4 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2027 | 1.75% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2025 | 1.13% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 373.2 | 2024 | 0.75% | 373.2 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2028 | 1.50% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 700.0 | 2026 | 1.50% | 700.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2030 | 2.13% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2038 | 2.75% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 391.6 | 2023 | 0.88% | 391.6 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2025 | 1.80% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2029 | 0.50% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2034 | 1.13% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 403.4 | 2023 | 0.13% | 403.4 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2027 | 0.63% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2039 | 1.63% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 389.7 | 2024 | 1.63% | 389.7 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2030 | 2.25% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 750.0 | 2026 | 0.63% | 750.0 | ||||||||||||||||
Bond (EMTN)* | 750.0 | 2030 | 1.00% | 750.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2041 | 1.00% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 278.3 | 2024 | 0.00% | 278.3 | ||||||||||||||||
Bond (EMTN)* | 1,000.0 | 2027 | 0.38% | 1,000.0 | ||||||||||||||||
Bond (EMTN)* | 1,000.0 | 2029 | 0.63% | 1,000.0 | ||||||||||||||||
Bond (EMTN)* | 1,000.0 | 2033 | 1.00% | 1,000.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2041 | 1.50% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 351.9 | 2023 | 0.00% | 351.9 | ||||||||||||||||
Bond (EMTN)* | 1,250.0 | 2025 | 0.00% | 1,250.0 | ||||||||||||||||
Bond (EMTN)* | 1,250.0 | 2028 | 0.25% | 1,250.0 | ||||||||||||||||
Bond (EMTN)* | 1,250.0 | 2032 | 0.75% | 1,250.0 | ||||||||||||||||
Bond (EMTN)* | 750.0 | 2051 | 1.63% | 750.0 | ||||||||||||||||
Bond (EMTN Green Bond)* | 600.0 | 2031 | 0.63% | 600.0 | ||||||||||||||||
Bond (EMTN Green Bond)* | 850.0 | 2032 | 2.38% | 850.0 | ||||||||||||||||
Bond (EMTN Green Bond)* | 750.0 | 2030 | 5.00% | 750.0 | ||||||||||||||||
Bond (EMTN Social Bond)* | 850.0 | 2026 | 1.38% | 850.0 | ||||||||||||||||
Bond (EMTN Social Bond)* | 800.0 | 2028 | 1.88% | 800.0 | ||||||||||||||||
Bond (EMTN Social Bond)* | 750.0 | 2027 | 4.75% | 750.0 | ||||||||||||||||
Promissory note loan* | 1,240.0 | 2029 | 2.07% | 120.0 | 50.0 | 309.0 | 761.0 | |||||||||||||
Mortgages** | 8,464.2 | 2034 | 1.57% | 784.7 | 1,001.8 | 830.9 | 494.3 | 787.5 | 4,565.0 | |||||||||||
Deutsche Wohnen | ||||||||||||||||||||
Other financing*** | 8,993.5 | 2029 | 1.63% | 466.8 | 201.1 | 1,518.2 | 888.3 | 882.5 | 5,036.6 | |||||||||||
44,759.2 | 3,580.2 | 3,183.0 | 5,099.1 | 4,232.6 | 4,801.7 | 23,862.6 | ||||||||||||||
- * Under the conditions of existing loan agreements, Vonovia is obliged to fulfill certain financial covenants, which it fulfilled.
- ** For a portion of the mortgages, Vonovia is obliged to fulfill certain financial covenants, which it fulfilled.
- *** This includes mortgages, convertible bonds, registered bonds and bearer bonds. For a portion of the financing, Deutsche Wohnen is obliged to fulfill certain financial covenants, which it fulfilled.
In the previous year, the maturities and average interest rates of the nominal obligations were as follows:
Maturities and average interest rates of the nominal obligations of the liabilities to banks and the liabilities to other creditors in the previous year
Repayment of the nominal obligations is as follows: | ||||||||||||||||||||
in € million | Nominal obligation Dec. 31, 2021 | Maturity | Average interest rate | 2022 | 2023 | 2024 | 2025 | 2026 | from 2027 | |||||||||||
Bond (US dollar)* | 185.0 | 2023 | 4.58% | 185.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2022 | 2.13% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2025 | 1.50% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 1,000.0 | 2023 | 2.25% | 1,000.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2022 | 0.88% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2026 | 1.50% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 1,000.0 | 2024 | 1.25% | 1,000.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2022 | 0.75% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2027 | 1.75% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2025 | 1.13% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2024 | 0.75% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2028 | 1.50% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 600.0 | 2022 | 0.79% | 600.0 | ||||||||||||||||
Bond (EMTN)* | 700.0 | 2026 | 1.50% | 700.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2030 | 2.13% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2038 | 2.75% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2023 | 0.88% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2025 | 1.80% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2029 | 0.50% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2034 | 1.13% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2023 | 0.13% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2027 | 0.63% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2039 | 1.63% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2024 | 1.63% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2030 | 2.25% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 750.0 | 2026 | 0.63% | 750.0 | ||||||||||||||||
Bond (EMTN)* | 750.0 | 2030 | 1.00% | 750.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2041 | 1.00% | 500.0 | ||||||||||||||||
Bond (Green Bond)* | 600.0 | 2031 | 0.63% | 600.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2024 | 0.00% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 1,000.0 | 2027 | 0.38% | 1,000.0 | ||||||||||||||||
Bond (EMTN)* | 1,000.0 | 2029 | 0.63% | 1,000.0 | ||||||||||||||||
Bond (EMTN)* | 1,000.0 | 2033 | 1.00% | 1,000.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2041 | 1.50% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 500.0 | 2023 | 0.00% | 500.0 | ||||||||||||||||
Bond (EMTN)* | 1,250.0 | 2025 | 0.00% | 1,250.0 | ||||||||||||||||
Bond (EMTN)* | 1,250.0 | 2028 | 0.25% | 1,250.0 | ||||||||||||||||
Bond (EMTN)* | 1,250.0 | 2032 | 0.75% | 1,250.0 | ||||||||||||||||
Bond (EMTN)* | 750.0 | 2051 | 1.63% | 750.0 | ||||||||||||||||
Bridge financing | 3,490.0 | 2022 | 0.65% | 3,490.0 | ||||||||||||||||
Promissory note loan* | 230.0 | 2025 | 0.12% | 120.0 | 50.0 | 60.0 | ||||||||||||||
Mortgages** | 8,142.3 | 2034 | *** | 1.17% | *** | 814.5 | 782.9 | 1,016.6 | 734.0 | 502.0 | 4,292.3 | |||||||||
Deutsche Wohnen | ||||||||||||||||||||
Other financing**** | 9,704.1 | 2028 | *** | 1.33% | *** | 279.9 | 744.7 | 202.4 | 1,562.0 | 889.2 | 6,025.9 | |||||||||
46,651.4 | 6,684.4 | 4,332.6 | 3,719.0 | 5,046.0 | 3,391.2 | 23,478.2 | ||||||||||||||
- * Under the conditions of existing loan agreements, Vonovia is obliged to fulfill certain financial covenants, which it fulfilled.
- ** For a portion of the mortgages, Vonovia is obliged to fulfill certain financial covenants, which it fulfilled.
- *** The calculation includes financial liabilities that will be transferred to Berlin housing companies in 2022 as part of the sale of residential units. These financial liabilities are included in the “Assets and liabilities held for sale” as at December 31, 2021.
- **** This includes mortgages, convertible bonds, registered bonds and bearer bonds. For a portion of the financing, Deutsche Wohnen is obliged to fulfill certain financial covenants, which it fulfilled.
The loan repayments shown for the following years contain contractually fixed minimum repayment amounts.
Of the nominal obligations to creditors, € 12,287.4 million (December 31, 2021: € 13,060.3 million) are secured by land charges and other collateral (account pledge agreements, assignments, pledges of company shares and guarantees of Vonovia SE or other Group companies). In the event that payment obligations are not fulfilled, the securities provided are used to satisfy the claims of the banks.
Financial liabilities to banks and other creditors have an average interest rate of approximately 1.48%. The financial liabilities as a whole do not contain any significant short-term interest rate risks as they relate either to loans with long-term fixed interest rates or variable-interest liabilities that are hedged using suitable derivative financial instruments (see [G54] Financial Risk Management).
Repayment of Bonds Under the European Medium-Term Notes Program (EMTN)
A bond in the amount of € 500.0 million issued in 2017 was repaid as scheduled in January 2022.
May 2022 saw the early repayment of a € 500.0 million bond from 2014 that was set to mature in July 2022.
In June 2022, a € 500.0 million bond from 2016 was repaid as scheduled.
In November 2022, Vonovia published a tender offer to buy back bonds maturing in 2023 and 2024. € 1,044.7 million relating to eight different bonds was bought back early within this context.
In December 2022, Vonovia repaid a floating rate bond from 2018 in the amount of € 600.0 million as planned.
Repayment of Bonds and Bearer Bonds of Deutsche Wohnen
Deutsche Wohnen repaid registered bonds worth € 150.0 million and a bearer bond in the amount of € 100.0 million as scheduled in January 2022.
In addition, an unscheduled repayment was made on a registered bond in the amount of € 76.3 million in February 2022.
Repayment of Secured Financing of Deutsche Wohnen
Deutsche Wohnen repaid secured financing in the amount of € 284.2 million pro rata and ahead of schedule in December 2022.
Issue of Bonds Under the European Medium-Term Notes Program (EMTN)
On March 21, 2022, Vonovia SE placed two social bonds in a total amount of € 1,650.0 million with maturities of 3.85 and 6.25 years, as well as a green bond worth € 850.0 million with a maturity of ten years. The bonds, which have a total amount of € 2,500.0 million, bear interest at a rate of 1.375%, 1.875% and 2.375%.
On March 30, 2022, Vonovia issued two variable-rate SEK bonds worth a total of SEK 1,250.0 million with maturities of two and five years that were disbursed on April 8, 2022.
On November 10, 2022, Vonovia SE issued two social and green bonds in a total amount of € 1,500.0 million with maturities of 4.5 and 8 years. The bonds bear interest at 4.75% and 5.00%.
Promissory Note Loan
On February 16, 2022, Vonovia SE issued promissory note loans of € 1,010.0 million with terms of between 5 and 30 years and an average interest rate of 1.13%.
Commercial Paper
On January 18, 2022, Vonovia SE took out a commercial paper of € 500.0 million with a maturity of 3 months. This was repaid in full on April 21, 2022.
Secured Financing
On February 25, 2022, Vonovia took out secured financing with Landesbank Baden-Württemberg in the amount of € 175.0 million with a maturity of ten years.
On April 1, 2022, Vonovia took out secured financing with Berlin Hyp in the amount of € 175.0 million with a maturity of ten years.
On April 12, 2022, Vonovia took out secured financing with Bayern LB in the amount of € 150.0 million with a maturity of ten years.
Unsecured Financing
On February 25, 2022, Vonovia SE took out an unsecured loan with Caixabank S.A. in the amount of € 142.0 million with a maturity of five years.
On February 25, 2022, Vonovia SE took out an unsecured loan with DZ Bank AG in the amount of € 250.0 million with a maturity of seven years.
Bridge Financing
The bridge facility taken out in connection with the acquisition of Deutsche Wohnen was valued at € 3,490.0 million and repaid in full as of March 1, 2022
Working Capital Facility
With an agreement dated September 30, 2021, Commerzbank, Bank of America, BNP Paribas, Deutsche Bank, ING, Morgan Stanley, Société Générale and UniCredit provided Vonovia with a working capital facility of € 2,000.0 million with an initial term of three years; on December 13, 2021, the facility was increased to € 3,000.0 million with the addition of Goldman Sachs, JPMorgan, Citibank and UBS. Citibank left the contract and was replaced by Mizuho Bank as of November 18, 2022. This credit line had not been used as of December 31, 2022.
Subsidy Loan
The European Investment Bank provided Vonovia with an unsecured loan of up to € 600.0 million on November 10, 2022.