Notes to the Financial Statements
19. Borrowings and Other Debt
2021 |
2020 |
|
|---|---|---|
€’000 | €’000 | |
Total borrowings | 288,167 | 293,430 |
288,167 | 293,430 | |
These loans are repayable in the following periods after the year end: | ||
In less than one year |
5,263 |
5,263 |
In one to two years |
5,263 |
5,263 |
In three to five years |
15,790 |
15,790 |
In more than five years | 261,851 | 267,114 |
288,167 | 293,430 | |
Long-term bank borrowings | 88,158 | 93,421 |
Private placement borrowings | 200,009 | 200,009 |
288,167 | 293,430 |
Current bank borrowings:
The Company has put in place an agreement with Ulster Bank DAC, amounting to a €50m revolving credit facility. This facility was for an initial five year term with an option to extend for two one year periods, subject to bank approval. The Company exercised its option during 2019 to extend the facility which is due for repayment (if drawn) in full in March 2024. This facility was un-drawn at the year-end (2020: €NIL).
The rate of interest on the loan is variable based on EURIBOR and the applicable margin. There is no tangible security held by Ulster Bank on this facility.
Long-term bank borrowings:
In December 2015 the Company entered into a Finance Contract with the European Investment Bank in respect of a €100m project finance facility. This facility is for a 20 year term of which was fully drawn down at year end. The balance outstanding at 31 December 2021 was €88.2m (2020: €93.4m).
Private Placement borrowings:
In December 2019 the Company issued €300m unsecured senior bonds to a range of institutional investors. These fixed rate bonds are issued in Euro currency and are listed on the Global Exchange Market of Euronext Dublin. The maturity date of the bonds is September 2049. At 31 December 2021 €200m of bonds had been purchased. During the course of 2021 it was agreed to defer the purchase of the remaining €100m of bonds, referred as forward purchase bonds, from September 2021 to September 2022. The Company retains the option to cancel the commitment to purchase some or all of the forward purchase bonds at no cost.
In addition, the Company issued an amount of unlisted notes to a subset of investors for a nominal price. Unlisted notes offer an alternative mechanism for investors to subscribe for the remaining bonds (instead of purchasing forward purchase bonds). At 31 December 2021 €9,000 had been received by the Company in relation to the purchase of unlisted notes.
The private placement debt and other facilities have conditions which require the Company to maintain certain covenants. At 31 December 2021 the Company is fully in compliance with all covenant requirements.