29 Bonds

29 Bonds

The carrying amounts and fair values of bonds are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

Carrying amount

Fair value

€ million

Coupon rate

Maturity date

2018

Cash Flows

Fair Value changes

Other
movements

2019

2018

2019

1

EMTN: Euro Medium Term Note. The fair value of the EMTN Notes cannot be accurately determined given the limited liquidity in secondary market trading for these notes, and is for reporting purposes replaced by the carrying value.

Retail Bond

5.125%

2023

188

0

−1

1

189

206

204

Institutional Eurobond

1.875%

2022

351

0

0

1

352

362

361

Institutional Eurobond

4.125%

2021

361

0

−6

1

355

376

363

Retail Bond

3.750%

2020

252

0

−2

0

250

260

252

EMTN Note1

3.284%

2019

20

0

0

−20

0

20

0

EMTN Note1

3.292%

2019

55

0

0

−55

0

55

0

Total bonds

 

 

1 227

0

−9

−72

1 146

1 279

1 180

Of which:

 

 

 

 

 

 

 

 

 

Non-current

 

 

1 152

0

−9

−248

896

1 204

928

Current

 

 

75

0

0

175

250

75

252

Derivatives used for hedging

 

 

−32

0

9

0

−23

 

 

Of which:

 

 

 

 

 

 

 

 

 

Non-current assets (−)

 

 

−34

0

11

0

−23

 

 

Current assets (−)

 

 

0

0

−1

0

−1

 

 

Non-current liabilities (+)

 

 

2

0

−2

0

0

 

 

Current liabilities (+)

 

 

0

0

1

0

1

 

 

29.1 Retail bonds

Maturing in 2020:

In March 2013, UCB completed a public offering of € 250 million bonds, in the form of a retail public offering in Belgium under its established EMTN program. The bonds were issued at 101.875% of the nominal value. The retail bond has a coupon of 3.75% per annum and an effective interest rate of 3.444% per annum. The bonds have been listed on the regulated market of Euronext Brussels.

Maturing in 2023:

During October 2009, UCB completed a public offering of € 750 million fixed rate bonds, carrying a coupon and an effective interest rate of 5.75% per annum, and aimed at retail investors.

During September 2013, UCB launched an unconditional public exchange offer for a maximum of € 250 million out of the € 750 million retail bonds maturing in November 2014 and having a gross coupon of 5.75%. The existing bondholders had the opportunity to exchange their existing bonds against newly issued bonds maturing October 2023 in an exchange ratio of 1 to 1. These bonds carry a coupon of 5.125% per annum while their effective interest rate is 5.398% per annum.

At the end of the exchange period, 175 717 existing bonds were tendered in the exchange offer, representing a nominal amount of € 176 million.

The 175 717 new bonds were issued in October 2013 and have been listed on Euronext Brussels. The existing bonds exchanged in the exchange offer were cancelled by UCB. The outstanding 574 283 of the retail bonds matured and have been redeemed in November 2014.

29.2 Institutional Eurobonds

Maturing in 2021:

In September 2013, UCB completed an offering of € 350 million senior unsecured bonds, due January 2021, issued under its EMTN program. The Bonds were issued at 99.944% in October 2013 and will be redeemed at 100% of their principal amount. These bonds carry a coupon of 4.125% per annum while their effective interest rate is 4.317% per annum. The bonds have been listed on Euronext Brussels.

Maturing in 2022:

In April 2015, UCB completed an offering of € 350 million senior unsecured bonds, due April 2022, issued under its EMTN program. The Bonds were issued at 99.877% in April 2015 and will be redeemed at 100% of their principal amount. These bonds carry a coupon of 1.875% per annum while their effective interest rate is 2.073% per annum. The bonds have been listed on Euronext Brussels.

29.3 EMTN notes

Matured in 2019:

In November and December 2019 UCB repaid the € 55 million notes and € 20 million notes respectively in full.

29.4 Fair value hedges

The Group designates derivative financial instruments under fair value hedges to the Retail Bonds and Institutional Eurobonds. The change in the carrying amount of the bonds is fully attributable to the change in the fair value of the hedged portion of the bonds and is almost fully offset by a change in fair value of the corresponding derivative financial instrument.