Financing

The funding available to the company under the credit facilities committed as at 30 June 2010 amounted to €62.4 million (€88.9 million at year-end 2009). Debts to credit institutions fell from €715.6 million at year-end 2009 to €708.7 million as at 30 June 2010. The average remaining maturity of the loans increased from 1.8 years, at year-end 2009, to 2.7 years and the fixed-interest part of the mortgage loans increased from 97.1% at year-end 2009 to 97.3% as at 30 June 2010. The average interest rate on the loans and interest-rate hedging instruments decreased from 4.7% to 4.6%, including margin, on 30 June 2010. The interest-rate coverage ratio was 2.7 on 30 June 2010.

Movements in mortgage loans in the period under review were as follows:

   2010 2009
Balance as at 1 January 691,048 747,307
Drawdownes 31,400 30,000
Redemptions - 61,660 - 44,808
Exchange-rate differences 11,853 - 2,956
Balance as at 30June 672,641 729,543
Redemption requirement of long-term debt 16,192 542
Balance as at 30 June 656,449 729,001

 

The remaining maturities of the mortgage loans are as follows:

 

 

Fixed interest

Variable interest

Total
Up to 1 year

15,428

16,325

31,753
From 1 to 2 years

34,509

82,891

117,400
From 2 to 5 years

203,899

319,589

523,488
Total loans

253,836

418,805

672,641

 

The mortgages are loans from banks with agreed residual terms averaging 1.8 years. As security for the mortgages and the overdraft facilities at the banks, mortgages have been attached to the properties with a value of € 1,254.2 million. The weighted average interest rate on the mortgages and interest rate swaps outstanding as at 31 March 2010 amounts to 4.7% per annum including margin. The interest coverage ratio amounted to 2.9 as at 31 March 2010.