41 Non-derivative Financial Liabilities
Non-derivative Financial Liabilities
Dec. 31, 2022 | Dec. 31, 2023 | ||||||||
in € million | non-current | current | non-current | current | |||||
Non-derivative financial liabilities | |||||||||
Liabilities to banks | 17,086.4 | 1,021.4 | 14,283.2 | 632.4 | |||||
Liabilities to other creditors | 24,183.3 | 2,558.4 | 25,353.3 | 2,397.7 | |||||
Deferred interest from non-derivative financial liabilities | – | 210.2 | – | 230.5 | |||||
41,269.7 | 3,790.0 | 39,636.5 | 3,260.6 | ||||||
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, € 178.6 million (December 31, 2022: € 173.8 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 | New loans | Scheduled repayments | Unscheduled repayments | Adjusted for effective interest method | Transfer into discontinued operations | Other adjustments | Exchange rate differences | As of | ||||||||||||
Bond (US dollar) | 233.2 | -185.0 | -48.2 | 0.0 | 0.0 | – | |||||||||||||||
Bond (SEK) | 112.8 | 0.3 | 113.1 | ||||||||||||||||||
Bond (EMTN) | 20,994.4 | -2,023.7 | -581.7 | 27.4 | -85.9 | 18,330.5 | |||||||||||||||
Bond (EMTN Green Bond) | 2,179.8 | -51.8 | 2.8 | -11.3 | 0.0 | 2,119.5 | |||||||||||||||
Bond (EMTN Social Bond) | 2,380.0 | -293.5 | 6.3 | -30.8 | 0.0 | 2,062.0 | |||||||||||||||
Bond (Deutsche Wohnen) | 1,811.6 | -8.1 | 1,803.5 | ||||||||||||||||||
Bearer bond | 1,361.0 | -8.8 | 1,352.2 | ||||||||||||||||||
Registered bond | 503.1 | -3.8 | 125.0 | 624.3 | |||||||||||||||||
Promissory note loan | 1,289.9 | -120.0 | 2.7 | -125.0 | 1,047.6 | ||||||||||||||||
Commercial paper | 1,980.0 | -1,480.0 | -2.6 | 497.4 | |||||||||||||||||
Mortgages* | 13,983.7 | 2,330.9 | -763.5 | -692.0 | -111.3 | -35.4 | 2.0 | 2.1 | 14,716.5 | ||||||||||||
Deferred interest | 210.2 | 20.3 | 230.5 | ||||||||||||||||||
45,059.7 | 4,310.9 | -4,572.2 | -1,619.0 | -143.3 | -35.4 | -105.7 | 2.1 | 42,897.1 | |||||||||||||
- * New loans include capitalized interest not affecting cash in the amount of € 0.6 million.
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 | 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 | 0.0 | 2,179.8 | ||||||||||||||
Bond (EMTN Social Bond) | 2,400.0 | -20.0 | 0.0 | 2,380.0 | |||||||||||||||
Bond (Deutsche Wohnen)* | 1,907.0 | -65.0 | -19.1 | -11.3 | 1,811.6 | ||||||||||||||
Bearer bond* | 1,472.0 | -100.0 | -11.0 | 1,361.0 | |||||||||||||||
Registered bond* | 508.0 | -4.9 | 503.1 | ||||||||||||||||
Promissory note loan* | 279.9 | 1,010.0 | 1,289.9 | ||||||||||||||||
Bridge financing* | 3,481.6 | -3,490.0 | 8.4 | – | |||||||||||||||
Commercial paper* | 150.0 | 500.0 | -650.0 | – | |||||||||||||||
Mortgages*; ** | 14,131.6 | 1,172.0 | -566.6 | -560.6 | -85.4 | -0.7 | -106.6 | 13,983.7 | |||||||||||
Deferred interest* | 172.7 | 37.5 | 210.2 | ||||||||||||||||
47,029.0 | 6,803.20 | -6,406.60 | -2,137.4 | -114.5 | -7.4 | -106.6 | 45,059.7 | ||||||||||||
- * Starting in the 2023 fiscal year, the non-derivative financial liabilities of Deutsche Wohnen and Vonovia will be presented in the same category. For increased comparability, the presentation of the previous year’s figures has been adjusted according to this format.
- ** New loans 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.
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, 2023 | Maturity | Average interest rate | 2024 | 2025 | 2026 | 2027 | 2028 | from 2029 | |||||||||||
Bond (SEK)* | 121.2 | 2026 | 5.29% | 48.5 | 72.7 | |||||||||||||||
Bond (EMTN)* | 18,464.0 | 2030 | 1.05% | 1,814.0 | 2,594.4 | 1,800.3 | 2,000.0 | 1,724.9 | 8,530.4 | |||||||||||
Bond (EMTN Green Bond)* | 2,136.9 | 2031 | 2.80% | 2,136.9 | ||||||||||||||||
Bond (EMTN Social Bond)* | 2,075.7 | 2027 | 2.77% | 610.5 | 750.0 | 715.2 | ||||||||||||||
Bond (Deutsche Wohnen)* | 1,760.7 | 2030 | 1.12% | 589.7 | 1,171.0 | |||||||||||||||
Registered bond* | 600.0 | 2031 | 1.68% | 100.0 | 70.0 | 50.0 | 380.0 | |||||||||||||
Bearer bond* | 1,260.2 | 2032 | 1.77% | 33.5 | 10.0 | 1,216.7 | ||||||||||||||
Promissory note loan* | 1,045.0 | 2029 | 2.57% | 50.0 | 309.0 | 60.0 | 626.0 | |||||||||||||
Commercial paper | 500.0 | 2024 | 4.16% | 500.0 | ||||||||||||||||
Mortgages** | 14,755.4 | 2030 | 2.24% | 671.1 | 1,646.6 | 1,435.8 | 1,777.1 | 2,119.2 | 7,105.6 | |||||||||||
42,719.1 | 3,033.6 | 4,830.7 | 3,996.6 | 5,012.3 | 4,679.3 | 21,166.6 | ||||||||||||||
- * 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.
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, 2022 | Maturity | Average interest rate | 2023 | 2024 | 2025 | 2026 | 2027 | from 2028 | |||||||||||
Bond (US dollar)* | 185.0 | 2023 | 4.58% | 185.0 | ||||||||||||||||
Bond (SEK)* | 121.2 | 2026 | 2.94% | 48.5 | 72.7 | |||||||||||||||
Bond (EMTN)* | 21,155.3 | 2029 | 1.09% | 2,023.7 | 1,931.6 | 2,750.0 | 1,950.0 | 2,000.0 | 10,500.0 | |||||||||||
Bond (EMTN Green Bond)* | 2,200.0 | 2031 | 2.80% | 2,200.0 | ||||||||||||||||
Bond (EMTN Social Bond)* | 2,400.0 | 2027 | 2.60% | 850.0 | 750.0 | 800.0 | ||||||||||||||
Bond (Deutsche Wohnen)*; ** | 1,760.7 | 2030 | 1.12% | 589.7 | 1,171.0 | |||||||||||||||
Registered bond*; ** | 475.0 | 2029 | 1.53% | 100.0 | 70.0 | 305.0 | ||||||||||||||
Bearer bond*; ** | 1,260.2 | 2032 | 1.77% | 33.5 | 1,226.7 | |||||||||||||||
Promissory note loan*; ** | 1,290.0 | 2028 | 1.23% | 120.0 | 50.0 | 309.0 | 811.0 | |||||||||||||
Mortgages**; *** | 13,911.8 | 2029 | 1.33% | 1,251.5 | 1,202.9 | 1,759.4 | 1,282.6 | 1,566.5 | 6,848.9 | |||||||||||
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.
- ** Starting in the 2023 fiscal year, the non-derivative financial liabilities of Deutsche Wohnen and Vonovia will be presented in the same category. For increased comparability, the presentation of the previous year’s figures has been adjusted according to this format.
- *** For a portion of the mortgages, Vonovia 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, € 12,682.1 million (December 31, 2022: € 12,287.4 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 1.75%. 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 [G55] Financial Risk Management).
Repayment of Bonds Under the European Medium-Term Notes Program (EMTN)
In January 2023, Vonovia implemented an open market repurchase to buy back bonds maturing in 2028, 2029 and 2033. An amount of € 53.6 million was bought back early within this context. A bond in the amount of € 403.4 million was repaid as planned in April 2023.
As part of its ongoing efforts to be proactive in managing its financial liabilities, Vonovia successfully completed a cash offer for a number of bonds. Out of the total nominal value offered by the bond investors amounting to approximately € 1.25 billion, Vonovia accepted the buyback of a nominal value of € 1.0 billion for a total value of € 892.0 million in July 2023. This corresponds to a discount of around 11%.
In July and September 2023, two bonds in the amount of € 391.6 million and € 351.9 million, respectively, were repaid as planned.
In December 2023, another bond worth € 876.4 million was repaid as planned.
Repayment of the U.S. Dollar Bond
In December 2023, the U.S. dollar corporate bond worth € 185.0 million was repaid as planned.
Repayment of Secured Financing of Deutsche Wohnen
Deutsche Wohnen repaid secured financing in the amount of € 281.8 million as scheduled in March 2023.
Repayment of Secured Financing of Vonovia
June 2023 saw Vonovia repay a secured financing arrangement in the amount of € 75.9 million on the final maturity date.
In December 2023, another secured financing arrangement worth € 462.0 million was repaid early.
Repayment of Promissory Note Loans
Vonovia repaid promissory note loans of € 120.0 million as scheduled in March 2023.
Extension of the Revolving Credit Facility (RCF)
Vonovia applied for an extension of the RCF in the amount of € 3,000.0 million by two years until 2026, and the application was approved by the bank in September 2023.
Secured Financing
In March 2023, Vonovia took out secured financing with Berlin Hyp in the amount of € 550.0 million with a maturity of ten years. The financing was disbursed in April 2023.
Vonovia also reached an agreement on secured financing of € 125.0 million with NordLB in June 2023, with disbursement in August 2023.
In June 2023, Vonovia concluded a secured financing agreement with a volume of € 130.0 million with UniCredit. A disbursement was made in the third quarter of 2023.
Another agreement on secured financing of € 175.0 million was reached with Berliner Sparkasse in July 2023, and was disbursed in the same month.
In December 2023, Vonovia SE concluded a ten-year secured financing arrangement with BayernLB for € 110.0 million, which was disbursed in the same month.
A secured financing agreement with Ärzteversorgung Westfalen Lippe for an amount of € 120.0 million with a term of 15 years was signed in December 2023 and disbursed in the same month.
Also in December 2023, a secured financing agreement with NordLB for an amount of € 50.0 million with a term of ten years was signed and again disbursed in the same month.
A secured financing agreement for € 150.0 million was signed with Ergo in December 2023, and will be disbursed over the coming year.
Unsecured Financing
On April 2023, Vonovia took out unsecured financing with Caixabank S.A. in the amount of € 150.0 million with a maturity of five years. The financing was disbursed in April 2023.
In September 2023, Vonovia took out an unsecured loan with UniCredit, BNP Paribas, JP Morgan and Société Générale in the amount of € 600.0 million with a maturity of two years.
The first installment of € 450.0 million from the unsecured loan taken out in 2022 with the European Investment Bank (EIB), in a total amount of € 600.0 million, was disbursed in September 2023.
Commercial Paper
Issues in the amount of € 500 million were outstanding under Vonovia SE’s commercial paper program as of December 31, 2023.