As at December 31, 2013, the fixed rate part of the debt was 425,346 thousand euros, or 83.6% of total debt. The “Project financing” item, i.e. 77,107 thousand euros, broke down as follows:
project financing in France €2,013 K
project financing in Germany €68,454 K
project financing in Italy €6,641 K
Variable rate debt (including the associated swaps) amounted to 83,513 thousand euros, or 16.4% of total debt and involved:
project financing in France €62,490 K
project financing in Italy €21,023 K
Analysis by type of rate including the effect of hedging instruments:
Including the effect of derivative hedging instruments, debt as at December 31, 2013 broke down as follows:
fixed rate debt of 480,474 thousand euros, or 94.4% of total debt;
variable rate debt of 28,385 thousand euros, or 5.6% of total debt. 22.6 Swaps
The Group’s derivative financial instruments presented in the financial liabilities only involve interest rate risk hedging instruments (swap); the underlying debt is made up of variable rate loans. These derivative instruments are recorded at their fair value as at December 31, 2013. The hedge ratio used is the cash flow hedge allowing the effective part to be recorded directly under shareholders’ equity and the ineffective part on the income statement.
NOTE 23 INFORMATION ON THE FAIR VALUE OF FINANCIAL INSTRUMENTS
The following table shows the book value on the balance sheet of the assets and liabilities by accounting category defined according to IAS 39, as well as their fair value:
2013/12/31
(in thousand euros)
Assets (liabilities) valued at fair value through profit and loss
Assets held for sale
Loans and borrowings
Liabilities at amortized cost
Total net book value on the
balance sheet Listed price
Internal model with measurable parameters
Liabilities at amortized cost
Securities av ailable for sale 3,186 3,186
Other non-current financial assets 8,684 8,684
Deposits and guarantees 927 927
Non-current financial assets - 3,186 9,611 - 12,797 - - -
Deriv ativ e instruments - positiv e
Trade receiv ables 26,170 26,170
Cash equiv alents 20,167 20,167 20,167
Cash 64,555 64,555
Current portion of financial assets 204 204
Current financial assets 20,167 - 90,929 - 111,096 20,167 - -
TOTAL ASSETS 20,167 3,186 100,540 - 123,893 20,167 - -
Bonds 318,320 318,320
Other bank loans and financial debt 121,332 121,332
Deriv ativ e financial instruments (interest rate sw ap) 6,139 - 6,139 6,139
Non-current financial debt 6,139 - - 439,652 445,791 - 6,139 -
Deriv ativ e instruments - negativ e 1,785 1,785 1,785
Bonds 24,209 24,209
Other bank loans and financial debt 36,919 36,919
Fair value Accounting categories
5.
FINANCIAL STATEMENTS
NOTE 24 MARKET RISKS
24.1 Credit risk
Credit risk corresponds to the risk of default on a financial asset.
Within the framework of its wind-generated electricity production business, the Group sells its electricity produced to distributors (such as EDF in France), generally through long-term contracts (around 15 years or more). Although the Group believes that the risk of loss or of insolvency of one of these distributor clients is limited to the extent that most of the historical distributors have been solidly established, if such an event occurred, it could have a significant negative impact on the Group’s business, financial position or income, or even its ability to achieve its objectives.
Within the framework of its activity of sale of operating wind farms, the Group has a broad client base, consisting of private or public buyers, who are individuals, industrial or financial players. The Group ensures that it is not creating or maintaining a dependency on any one of them. This allows it to best identify and manage the exposure inherent to this activity. The sale of a farm could also be subject to a condition precedent of the buyer obtaining financing or keeping financing in place.
The Group’s major clients are buyers of electricity produced by the Group in France, Germany, Italy and Morocco, as well as buyers of wind farms.
24.2 Liquidity risk
The liquidity risk is the risk for the Group to be unable to face its obligations in due time or under normal conditions. The Group’s liquidity risk corresponds, in particular, to commitments to repay its convertible bond, which is not backed by any assets, and to financing its future needs, including the development of wind projects and the Group’s general needs.
In order to face its general needs, the Group implemented a flexible business model, which enables it to balance its cash through occasional disposals of wind projects and farms, notably by selling them to its investment vehicle created in 2011.
Moreover, in the summer of 2013, the MEIF4 AX Holdings SAS company (“the Offeror”), a company controlled by Macquarie European Infrastructure Fund 4, launched a friendly takeover offer on the THEOLIA Group. The offer aimed to give THEOLIA a long-term, majority shareholder that could provide stability in a difficult economic and regulatory environment. If this offer had succeeded, it would have enabled THEOLIA to anticipate the repayment of its convertible bond and to pursue its development plans.
After the publication of the offer’s results, the Offeror received 64.79% of the Company’s voting rights on a non-diluted basis. The conditional threshold of 2/3 of the voting rights on a non-diluted basis, set by the Offeror, had therefore not been reached. The takeover offer was given up.
2012/12/31
(in thousand euros)
Assets (liabilities) valued at fair value through profit and loss
Assets held for sale
Loans and borrowings
Liabilities at amortized cost
Total net book value on the
balance sheet Listed price
Internal model with measurable parameters
Liabilities at amortized cost
Securities av ailable for sale 7,137 7,137
Other non-current financial assets 9,831 9,831
Deposits and guarantees 960 960
Non-current financial assets - 7,137 10,791 - 17,928 - - -
Trade receiv ables 21,222 21,222
Cash equiv alents 17,498 17,498 17,498
Cash 51,673 51,673
Current portion of financial assets 4,569 4,569
Current financial assets 17,498 77,464 - 94,962 17,498 -
TOTAL ASSETS 17,498 7,137 88,255 - 112,890 17,498
Bonds 105,130 105,130
Other bank loans and financial debt 145,739 145,739
Non-current financial debt - - - 250,869 250,869 - - -
Deriv ativ e instruments - negativ e 11,192 11,192 11,192
Bonds 4,228 4,228
Other bank loans and financial debt 43,313 43,313
Trade pay ables 17,703 17,703
Other current financial liabilities 14,169 14,169
Current accounts - liabilities 40 40
Current financial liabilities 11,192 - - 79,453 90,645 - 11,192 -
TOTAL LIABILITIES 11,192 - - 330,322 341,514 - 11,192 - Fair value