The movement in the loans was as follows:
|
( x EUR 1,000 ) |
2008 |
2007 |
|
Balance at 1 January |
330,420 |
290,000 |
|
New loans |
150,000 |
40,420 |
|
Redemptions |
50,420 |
- |
|
|
|
|
|
Balance at 31 December |
430,000 |
330,420 |
|
Long-term |
220,000 |
280,420 |
|
Short-term |
210,000 |
50,000 |
|
|
|
|
|
Total |
430,000 |
330,420 |
|
|
|
Long-term credit facilities
The long-term credit facilities of TenneT TSO amounted to EUR 420 million at 31 December 2008.
Of this amount, EUR 220 million had a remaining term of more than one year at 31 December 2008, while
EUR 200 million had a remaining term of less than one year.
The long-term portion of the credit facilities consists of two loans taken out with the European Investment Bank (EIB).
In 2005, TenneT agreed an initial loan of EUR 160 million with the EIB in order to finance the ‘Randstad 380 kV’ project. In 2006, TenneT drew a sum of EUR 40 million from this loan, under a fixed interest rate of 4.2% and a term that is set to expire in 2021. In 2007, TenneT drew a second sum of EUR 40 million from this loan under a fixed interest rate of 4.5% and a term that is set to expire in 2022. These two withdrawals must be repaid by means of linear redemptions starting in 2010 and 2011, respectively. Of the total loan sum of EUR 160 million, EUR 80 million is not yet available on demand.
In 2007, TenneT TSO agreed a loan of EUR 140 million with the EIB in order to fund the construction of the NorNed cable. In 2008, TenneT TSO drew the full amount from this loan under a fixed interest rate of 4.3%. This loan must be repaid by means of linear redemptions starting in 2012. The terms and conditions of the loan agreements concluded with the EIB include stipulations for negative pledge and pari passu. No securities have been issued.
The loans agreed with the EIB include arrangements concerning ratios.
The short-term portion of the long-term credit facilities consists of five loans of EUR 40 million which will be redeemed in June 2009. These loans were arranged with five banks in 2004 under a bilateral loan agreement. The terms and conditions of the loans include stipulations for negative pledge and pari passu. No securities have been issued.
The average effective rate of interest payable on long-term loans in 2008 was 3.9%. The arranged interest rate swaps are included in this percentage. These interest rate swaps have been arranged in order to cover the interest risk of the short-term portion of the loan portfolio.
Short-term loan
In October 2008, TenneT Holding took out a short-term loan of EUR 10.0 million with ING. This loan is set to expire on 31 March 2009.
The book value of the loans is EUR 430.0 million (2007: EUR 330.0 million). The fair value of the loans is EUR 431.5 million (2007: EUR 332.1 million). The fair value of the loans has been calculated using discounted cash flow valuation methods, on the basis of the market conditions prevailing on the balance sheet date.
Short-term credit facilities
TenneT TSO has short-term uncommitted credit facilities with a total value of EUR 330 million at its disposal. The terms and conditions of these credit facilities include stipulations for negative pledge and pari passu. No securities have been issued. The facilities all attract interest at a floating rate. On the balance sheet date, no withdrawals had been made from these facilities.
TenneT Holding has short-term committed credit facilities with a total value of EUR 150 million at its disposal. The terms and conditions of these credit facilities include stipulations for negative pledge and pari passu. No securities have been issued. The facilities all attract interest at a floating rate. On the balance sheet date, a sum of EUR 34 million (comprising a current account credit facility of EUR 24 million and a short-term loan of
EUR 10 million) had been drawn from these facilities.
APX Commodities Ltd. has a rolling drawdown facility to a maximum value of GBP 20 million at its disposal. Interest is payable on drawings at a variable rate; on the balance sheet date, a sum of EUR 1.7 million had been drawn from this facility.
EnerQ B.V. has a current account facility of EUR 200 million, which is underwritten by the Ministry of Economic Affairs. On the balance sheet date, this facility had not been used. The facility was terminated as of
1 January 2009 in connection with the transfer of activities to SenterNovem.