Interest-bearing liabilities at the end of the period totalled SEK 18,021m (18,035) and the average interest rate was 3.96 per cent excluding and 4.08 per cent including commitment fees on the undrawn portion of committed credit facilities. The average fixed-rate period was 3.0 years, taking the effect of derivative instruments into account, while the average fixed-rate period for variable-rate loans was 69 days.
Fabege’s portfolio of derivative instruments remained unchanged compared with yearend and comprises interest-rate swaps totalling SEK 7,000m with terms of maturity extending through 2021 and carrying fixed interest at annual rates of between 1.87 and 2.73 per cent before margins.
Fabege also holds cancellable swaps totalling SEK 7,550m at interest rates ranging from 2.87 to 3.98 per cent before margins that mature between 2013 and 2018. Accordingly, interest rates on 80 per cent of Fabege’s loan portfolio have been fixed using fixed-income derivatives.
The derivatives portfolio is measured at market value and the change in value is recognised in the profit and loss account. At 31 March 2013, the recognised negative fair value adjustment of the portfolio amounted to SEK 667m (854). The derivatives portfolio is measured at the present value of future cash flows. The change in value is of an accounting nature and has no impact on the company’s cash flow. At the due date, the market value of derivative instruments is always zero.
Fabege has a commercial paper programme in an amount of SEK 5,000m. At the end of the period, outstanding commercial paper amounted to SEK 2,657m (2,740). Fabege has available long-term credit facilities covering all outstanding commercial paper at any given time. At 31 March 2013, the company had unutilised committed lines of credit of SEK 4,050m.
At 31 March 2013, Fabege had a total of SEK 1,045m in bonds outstanding within the framework of its bond program, which was launched in December 2011. The programme, which has a limit of SEK 5,000m, was introduced via the co-owned company Svensk FastighetsFinansiering AB (SFF). The bonds are secured by collateral in property mortgage deeds. SFF is jointly owned by Fabege, Wihlborgs and Peab. Fabege owns 33,3 per cent of the company. The aim is to expand the company’s financing base with a new source of financing.
In February, Fabege issued a three-year covered property bond in an amount of SEK 1,170m, based on collateral in the Solna Uarda 5 property, where Vattenfall has its head office.
Net financial items included expenses of SEK 8m, primarily pertaining to costs for the bond programme and new property mortgages. The total loan volume at the end of the period includes SEK 515m in loans for projects, on which interest of SEK 4m is capitalised.
Loan maturity structure, per 31 March 2013
| Year, maturity |
Credit agreements,
SEKm |
Used amount,
SEKm |
| Commercial paper programme |
5,000 |
2,657 |
| < 1 year |
7,260 |
3,910 |
| 1-2 years |
710 |
710 |
| 2-3 years |
8,975 |
6,092 |
| 3-4 years |
40 |
40 |
| 4-5 years |
110 |
110 |
| > 5 years |
4,976 |
4,502 |
| Total |
27,071 |
18,021 |
Interest rate maturity structure, per 31 March 2013
| Year, maturity |
Amount, SEKm |
Average interest rate, % |
Share,% |
| < 1 year |
5,815 |
6.41* |
32 |
| 1-2 years |
1,206 |
2.48 |
7 |
| 2-3 years |
300 |
3.70 |
2 |
| 3-4 years |
4,200 |
2.71 |
23 |
| 4-5 years |
3,000 |
3.28 |
17 |
| > 5 years |
3,500 |
2.48 |
19 |
| Total |
18,021 |
3.96 |
100 |
* The average interest rate for the < 1 year period includes the margin for the entire debt portfolio because the Company’s fixed-rate period is established using interest rate swaps, which are traded without margins.