18 Non-current financial liabilities

18 Non-current financial liabilities
        31.12.2010 31.12.2011
  CHF thousands          
    Currency Due date Interest    
  Note CHF 10.04.2017 3.625% 15,000 15,000
  Note CHF 30.03.2018 3.660% 25,000 25,000
  Note CHF 20.03.2023 3.625% 10,000 10,000
  Note CHF 28.06.2030 2.500% 20,000 20,000
  Bank loan CHF 12.12.2020 3.100% 10,000 10,000
  Bank loan CHF 04.07.2016 3.360% 50,000 50,000
  Bank loan (SET)1) EUR 30.06.2014 variable 62,500 36,468
  Bank loan (SET)1) EUR 31.07.2015 5.020% 68,750 66,858
  Interest rate swaps (SET)1) EUR 30.06.2014   3,646 2,229
  Loans       264,896 235,555
  Debenture bond par value CHF 18.11.2016 2.500% 200,000 200,000
  Net expenditures CHF     -2,195 -1,481
  Debenture bond par value CHF 20.07.2022 2.375% 115,000 115,000
  Net expenditures CHF     -2,775 -2,351
  Bonds       310,030 311,168
  Investment loan CHF 31.12.2015 no interest 758 455
  Investment loan2) CHF 31.12.2020 no interest 2,125 1,700
  Investment loan CHF 31.12.2015 no interest 234 140
  Loan (minority interest)3) CHF 31.12.2070 2.700% - 7,865
  Loan (minority interest) EUR 31.12.2014 variable 7,455 7,249
  Residual purchase obligation 3M Progetti S.r.l. EUR 31.12.2015 7.650% - 1,124
  Residual purchase obligation Repower Furnizare România S.r.l. EUR 30.06.2015 7.500% 13,997 396
  Other financial liabilities       24,569 18,929
  Total       599,495 565,652
  Financial liabilities are carried in the following currencies          
  Swiss francs       443,147 451,328
  Euros (translated)       156,348 114,324

With the exception of interest rate swaps, all non-current financial liabilities fall into the category “Other financial liabilities” and are recognised at amortised cost using the effective interest method.

The weighted average interest rate based on the nominal value on the balance sheet was 3.1 per cent (previous year: 3.4%). The fair value of non-current financial liabilities is TCHF 631,306 (previous year: TCHF 666,496).

Repower has complied with all credit and loan agreements in full.

  • span class="superscript">1) Interest rate swaps are agreed and hedge accounting applied to hedge the variable-interest SET bank loan. The value adjustment of TCHF 1,316 (previous year: TCHF 789), of which TCH 513 apply to minority interests (previous year: TCHF 308), was recognised in the consolidated statement of comprehensive income (fair value adjustment of financial instruments) after taking into account deferred income taxes of TCHF -358 (previous year: TCHF -268), of which TCHF -140 apply to minority interests (previous year: TCHF -105). The maturity dates of the interest rate swaps are the same as the maturity dates for the SET loan interest and will generate cash flows, expenses and/or income in the coming years. Interest rate swaps are subject to hedge accounting and are recognised at fair value. The value adjustment is recorded under other income.
  • span class="superscript">2) Mortgage assignments were pledged as security for the investment loan of TCHF 1,700 (previous year: TCHF 2,125). The fixed assets pledged in this connection are disclosed in Note 9.
  • span class="superscript">3) The minority shareholders of Repartner Produktions AG granted an interest-free loan of TCHF 15,925 commensurate with their share to finance the expansion of Repower's Taschinas hydropower plant in Grüsch. The terms of the loan stipulate repayment on a straight-line basis over 59 years as well as pro-rata compensation based on EBIT generated by the Taschinas power plant. Financial liabilities must be recorded at fair value. Since no market price is available, this is determined on the basis of the present value of future cash flows. The interest rate applied is 2.7 per cent. The interest rate advantage for the interest-free shareholder loan amounts to TCHF 8,004 and was classified as a hidden contribution which was taken into account at Group level as a capital increase in minority interests. The liability component of the interest-free loan amounts to TCHF 7,921 and is recognised over the loan period using the effective interest method, with the short-term part (TCHF 56) recorded under current financial liabilities.