19.Financial liabilities

19.1Bonds

The CHF 0.2 million expenses incurred in connection with the issuance of the bond were capitalised under prepayments and accrued income on 21 June 2017. This accrual was released over the term of the bond. The issue price at 100.8 % led to an agio-revenue of CHF 0.8 million. The realisation of the capitalised agio resulted in an effective interest rate of -0.29 % on the bond. The bond was repaid on 21 June 2019.

The CHF 2.1 million expenses incurred in connection with the issuance of the bond were capitalised under prepayments and accrued income on 12 July 2013. This accrual will be released over the term of the bond. The actual interest rate on the bond is thereby increased from 1.625 % to 1.72 % per year.

The CHF 0.4 million expenses incurred in connection with the issuance of the bond were capitalised under prepayments and accrued income on 21 June 2017. This accrual will be released over the term of the bond. The issue price at 100.4 % led to an agio-revenue of CHF 0.4 million. The actual interest rate on the bond is thereby increased from 0.50 % to 0.51 % per year.

19.2Maturing structure of financial liabilities

Bank loans are usually set at variable interest rates, whereas bonds are set at fixed terms. There are no financing arrangements in place linked to financial covenants. 

In the year under review, financial liabilities decreased by CHF 124.6 million. The CHF 100 million bond 2017 –2019 was repaid on 21 June 2019. In the US, a financing structure set up in connection with a government grant was reversed in a non-cash transaction. This transaction reduced the amount of loans on the liabilities side by CHF 47.3 million. See also notes 13 and 14. Bank debt increased by CHF 25.8 million, mainly due to acquisitions. 63.0 % (previous year: 67.0 %) of the financing is denominated in Swiss francs, mainly through two bonds in the amount of CHF 300.0 million. 24.5 % (previous year: 20.1 %) of the financial liabilities is denominated in Euro, the financing in US dollars was fully repaid with the reversal of the above mentioned financing structure in the US (previous year: 7.8%). CHF 60.4 million or 12.5 % (previous year: 5.1 %) of the financing is denominated locally in emerging market currencies such as Brazilian real, Chilean and Mexican peso and Tunisian dinar.