19.-
DERIVATIVE FINANCIAL INSTRUMENTS
The breakdown of the derivative financial instruments in the consolidated balance sheets for 2013 and 2012 is as follows:
Item
Thousand euros
2013
2012
Financial liabilities
Financial liabilities
Interest-rate derivatives (Notes 18 and 25)
59
5,814
Share-based remuneration scheme 2007-2013 (Notes 20 y 25)
-
40,344
Total
59
46,158
19.1
Interest rate derivatives
The following is a breakdown of derivative financial instruments and their corresponding fair values at 31 December 2013 and 2012, along with the notional maturity
dates to which they are linked. This information is presented (in thousands of euros) separating the derivatives considered as accounting hedges (in accordance with the
requirements set forth in IAS 39) from any considered as inefficient.
Fair Value
31.12.2013
Fair Value
31.12.2012
Outstanding notional amount
Subsidiary company
Instrument
Financial
Financial
31.12.2013
31.12.2014
Efficient hedges
NH Finance, S.A.
IRS
-
(5,690)
-
-
Total efficient hedges
-
-
(5,690)
-
-
Inefficient hedges
Donnafugata Resort
Cap
(59)
(124)
11,187
10,634
Total inefficient hedges
(59)
(124)
11,187
10,634
Total hedges
(59)
(5,814)
11,187
10,634
In order to determine the fair value of interest rate derivatives (IRS, collars and others), the Group uses cash flow discounting on the basis of the implicit discount rates
determined by the euro interest rate curve according to market conditions on the date of valuation.
These financial instruments have been classified as level 2 instruments in accordance with the calculation hierarchy established in the IFRS 7.
Efficient hedges
In 2012 the Group arranged interest rate swaps totalling EUR 316million, equivalent to 100%of the A1 tranche of the syndicated loan of NHFinance, S.A. at an average
rate of 1.02%. On 8 November 2013, the Group had fully repaid the syndicated loan and cancelled the swap agreement.
As a result of the settlement of the swaps, a loss of EUR 5,880 thousand was recognised with a charge to the consolidated statement of comprehensive income for 2013
(
Note 27.7) (in 2012 a loss of EUR 5,314 thousand was recognised with a charge to equity).
Inefficient hedges
The Group hedges the interest-rate risk of part of its euro loans, using a cap interest-rate option. The cap hedging agreement sets a maximum interest-rate limit in
exchange for a premium. If the interest rates exceed this limit, the financial institution will pay the Group the differential laid down in the agreement.
The change in the fair value of this interest rate derivative contributed EUR 65 thousand in 2013 (2012: EUR 62 thousand) to the consolidated comprehensive profit
and loss statement.
19.2
Sensitivity analysis of derivative financial instruments
Interest rate sensitivity analysis
Changes in the fair value of the interest rate derivatives contracted by the Group depend on the long-term change in the euro interest rate curve. The fair value of these
derivatives totalled a negative amount of EUR 59 thousand at 31 December 2013 (31 December 2012: EUR 5,814 thousand).
The details of the sensitivity analysis on the fair values of the derivatives contracted by the Group at the 2013 and 2012 year ends in both net assets (“efficient hedges”)
as well as in Profit (Loss) (“inefficient hedges”) are shown below:
REPORT ONTHE CONSOLIDATED FINANCIAL STATEMENTS
89
