Note 5
Interest-bearing liabilities

December 31 (CHF in thousands)

 

 

2017

2016

Bonds 2012–2018 1.5% coupon

 

nominal value

350,000

350,000

 

 

premium on issuance

16

34

Bonds 2011–2021 2.25% coupon

 

nominal value

350,000

350,000

Loan 2016–2024, $475 million
(in 2016 $500 million)

Group

 

464,218

510,675

Loan 2017–2027, $350 million

Group

 

342,055

Total

 

 

1,506,289

1,210,709

thereof current liabilities

 

 

350,016

thereof non-current liabilities

 

 

1,156,273

1,210,709

The 1.5% bonds, due 2018 and the 2.25% bonds, due 2021, pay interest annually in arrears, at fixed annual rates of 1.5% and 2.25%, respectively. The Company has the option to redeem the bonds prior to maturity, in whole, at par plus accrued interest, if 85% of the aggregate principle amount of the bonds has been redeemed or purchased and cancelled.

The bonds, issued prior to January 1, 2013, are stated at their nominal value less any discount or plus any premium on issuance. Bonds are accreted/amortized to par over the period to maturity.

The Company has, through Group Treasury Operations, entered into an interest rate swap with a bank to effectively convert the bonds maturing 2021 into floating rate obligations.

In 2016, the Company entered into a loan agreement of USD 500 million with Group Treasury Operations due in 2024 to hedge the USD 500 million loan granted to a Group company. In 2017, the Company repaid USD 25 million. The average interest in 2017 and 2016 was 2.11% and 1.65%, respectively.

In 2017, the Company entered into a loan agreement of USD 350 million with Group Treasury Operations due in 2027 to hedge the USD 350 million loan granted to a Group company. The average interest in 2017 was 2.20%.