18 Non-current financial liabilities

18 Non-current financial liabilities
        31.12.2011 31.12.2012
  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 11.12.2020 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 36,468 12,080
  Bank loan (SET)1) EUR 31.07.2015 5.020% 66,858 66,440
  Interest rate swaps (SET)1) EUR 30.06.2014   2,229 1,268
  Loans       235,555 209,788
  Debenture bond par value CHF 18.11.2016 2.500% 200,000 200,000
  Net expenditures CHF     -1,481 -1,109
  Debenture bond par value CHF 20.07.2022 2.375% 115,000 115,000
  Net expenditures CHF     -2,351 -2,130
  Bonds       311,168 311,761
  Investment loan2) CHF 31.12.2015 no interest 455 304
  Investment loan2) CHF 31.12.2020 no interest 1,700 1,488
  Investment loan2) CHF 31.12.2015 no interest 140 94
  Loan (minority interest)3) CHF 31.12.2070 2.700% 7,865 9,129
  Loan (minority interest) EUR 31.12.2014 variable 7,249 12,151
  Residual purchase obligation Forze Motrici Pistoia S.r.l. (formerly: 3M Progetti S.r.l.) EUR 31.12.2016 7.650% 1,124 1,117
  Residual purchase obligation Repower Furnizare România S.r.l. EUR     396 -
  Leasing commitments4) CHF   2.50% - 668
  Other financial liabilities       18,929 24,951
  Total       565,652 546,500
  Financial liabilities are carried in the following currencies:          
  Swiss francs       451,328 453,444
  Euros (translated)       114,324 93,056

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 date was 3.0 per cent (previous year: 3.1%). The fair value of non-current financial liabilities amounted to TCHF 604,467 (previous year: TCHF 631,306).

Repower has fully complied with all credit and loan agreements.

1) Interest rate swaps are agreed and hedge accounting applied to hedge the variable-interest SET bank loan. The value adjustment of TCHF 946 (previous year: TCHF 1,316), of which TCH 369 apply to minority interests (previous year: TCHF 513), was recognised in the consolidated statement of comprehensive income (fair value adjustment of financial instruments) after taking into account deferred income taxes of TCHF -360 (previous year: TCHF -358), of which TCHF -140 apply to minority interests (previous year: TCHF -140). 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.

2) Mortgage assignments were pledged as security for the investment loan of TCHF 1,488 (previous year: TCHF 1,700). The fixed assets pledged in this connection are disclosed in Note 9.

3) In the 2011 financial year 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 originally over 59 years as well as pro-rata compensation based on EBIT generated by the Taschinas power plant. Financial liabilities are to be recognised at the time they are acquired 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 amounted 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.

Over the course of 2012 other partners were acquired for Repartner Produktions AG that also granted the company interest-free loans. Entry into the partnership was retroactive and under the same terms and conditions as the previous partners. The additionally granted loan amount at the beginning of the year is TCHF 1,356.

At the end of 2012 the liability component of the interest-free loan amounts to TCHF 9,196 (previous year: TCHF 7,921) and is recognised over the loan period using the effective interest method, with the short-term part recorded under current financial liabilities in the amount of TCHF 67 (previous year: TCHF 56).

4) The detailed maturities for the leasing commitments can be found in Note 32.