3.1 Interest-bearing financial liabilities and pledged or assigned assets

3.1.1 Interest-bearing financial liabilities

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CHF million

Within 1 year

Up to 5 years

Maturity over 5 years

2020

2019

 

 

 

 

 

 

Bonds (at fixed interest rates)

 

150

625

775

574

Other financial liabilities (at fixed interest rates) 1

21

90

 

111

96

Other financial liabilities (at variable interest rates)

69

 

 

69

91

Loans from pension fund institutions

3

 

 

3

1

Total

93

240

625

958

762

1 This category comprises other financial liabilities with a fixed interest period of more than three months.

Net debt, which is calculated as the difference between interest-bearing liabilities and cash and cash equivalents and marketable securities, decreased by CHF 115 million to CHF 117 million in the year under review (previous year: CHF 232 million). The reason for this decrease was primarily related to the free cash flow (CHF 224 million) minus the dividend payments to GF shareholders and minority shareholders amounting to CHF 115 million.  

In the year under review, the financial flexibility and maturity profile were improved by the placement of a CHF 200 million bond with a maturity of 9.5 years. The following table shows in detail the various categories of other financial liabilities by currency and interest rate:

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CHF million

Issuing currency

Range interest rate %

2020

Issuing currency

Range interest rate %

2019

 

 

 

 

 

 

 

Bonds (at fixed interest rates)

 

 

775

 

 

574

 

 

 

 

 

 

 

Bond (Georg Fischer Finanz AG) 2.5% 2013–2022 (12 September) Nominal value: CHF 150 million

CHF

2.6

150

CHF

2.6

149

Bond (Georg Fischer Finanz AG) 0.875% 2016–2026 (12 May) Nominal value: CHF 225 million

CHF

0.9

225

CHF

0.9

225

Bond (Georg Fischer AG) 1.05% 2018–2028 (12 April) Nominal value: CHF 200 million

CHF

1.06

200

CHF

1.06

200

Bond (Georg Fischer AG) 0.95% 2020–2030 (25 March) Nominal value: CHF 200 million

CHF

0.96

200

 

 

 

 

 

 

 

 

 

 

Other financial liabilities (at fixed interest rates) 1

 

 

111

 

 

96

 

 

 

 

 

 

 

 

USD

3.5

85

USD

5.0

73

 

EUR

0.8–2.0

17

EUR

1.0–1.4

15

 

CHF

1.5–4.3

8

CHF

1.5–4.3

7

 

Other

2.5

1

Other

2.5

1

 

 

 

 

 

 

 

Other financial liabilities (at variable interest rates)

 

 

69

 

 

91

 

 

 

 

 

 

 

 

CNY

3.4–4.4

41

CNY

3.9–4.6

55

 

EUR

0.8–1.6

17

EUR

1.5–1.6

22

 

TRY

8.5–17.5

10

TRY

10.3–13.5

13

 

Other

2.1

1

Other

3.1

1

 

 

 

 

 

 

 

Loans from pension fund institutions

 

 

3

 

 

1

 

 

 

 

 

 

 

 

CHF

1.0

3

CHF

1.0

1

 

 

 

 

 

 

 

Total

 

 

958

 

 

762

1 This category comprises other financial liabilities with a fixed interest period of more than three months.

The term of the syndicated loan concluded in the previous year was extended by one year to 2025 during the year under review:

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Debtors

Minimum Term

Credit

Thereof utilized

Georg Fischer Ltd/Georg Fischer Finanz AG

2019–2025

CHF 400 million

CHF 0 million

The syndicated credit line provides the GF Corporation with the financial flexibility to swiftly act, for instance in the case of acquisitions, and was not drawn as of the end of the year. In addition to other terms, the syndicated credit line is subject to a covenants with respect to the net debt ratio (ratio of net debt to EBITDA). The conditions of the syndicated credit line are considered to represent standard conditions for such types of arrangements. As of 31 December 2020, the financial covenants were not breached.

The bonds placed on the market as well as the syndicated credit line are subject to standard cross-default clauses, whereby the outstanding amounts may all become due if early repayment of another loan is demanded of the company or one of its main GF Corporate Companies, owing to a failure to meet the credit terms. As of the balance sheet date, the effective credit terms had been met.

The interest-bearing financial liabilities also included loans payable to employee benefit plans in the amount of CHF 3 million (previous year: CHF 1 million). 

Accounting principles

Financial liabilities comprise loans, bonds and finance lease contracts. They are recognized at their amortized cost. Borrowing costs are recognized in the income statement using the effective interest method. Borrowing costs that can be allocated directly to the construction, build-up, or purchase of a qualifying asset are capitalized as part of the acquisition or manufacturing costs of the asset.

3.1.2 Pledged or assigned assets

Assets pledged or restricted on title in part or whole amounted to CHF 9 million (previous year: CHF 12 million). They essentially contain CHF 5 million (previous year: CHF 5 million) of pledged assets related to accounts receivable and CHF 3 million (previous year: CHF 3 million) related to liquid assets.

The assets are pledged or restricted on title as collateral for bank loans.

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