Note 5
Interest-bearing liabilities

December 31 (CHF in thousands)

 

 

2016

2015

Bonds 2011–2016 1.25% coupon

 

nominal value

500,000

 

 

discount on issuance

(225)

Bonds 2012–2018 1.5% coupon

 

nominal value

350,000

350,000

Bonds 2011–2021 2.25% coupon

 

nominal value

350,000

350,000

 

 

premium on issuance

34

52

Fixed rate loan, $500 million

Group

 

510,675

Total

 

 

1,210,709

1,199,827

thereof current liabilities

 

 

499,775

thereof non-current liabilities

 

 

1,210,709

700,052

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 1.25% Bonds paid interest in arrears, at fixed annual rate of 1.25% and were repaid in October 2016.

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 fixed loan agreement of USD 500 million with Group Treasury Operations to hedge the USD 500 million loan granted to a Group company. The average interest in 2016 was 1.65%.