Page 86 - Annual Report 2013
P. 86
Financial Statements
5.20 Bank loans
Borrowings are analysed as follows:
Analysis of loans 2013 2012
Long term loans
EIB loan 503,900,970 565,376,960
Total long term loans 503,900,970 565,376,960
Short term loans
EIB loan 61,475,990 57,859,530
Accrued interest & related expenses 3,201,852 2,311,285
Total short term loans 64,677,842 60,170,815
Total bank loans 568,578,812 625,547,775
AIA and EIB, under a supplemental agreement signed on 19 December 2008 between them, agreed to
partial release the Greek State’s Guarantee on the outstanding balance of EIB Loan and to modify certain
terms of the EIB Master Facility Agreement related to the applicable interest rates. The modified terms are
effective from 31 July 2009 and include the consolidation and division of the outstanding balance of the
initial loan into two loans, Loan A and Loan B. As of 31 December 2013 the outstanding balance of Loan A
was €126.750.756 and Loan B €438.626.204.
EIB will benefit from a Greek State Guarantee in respect of Loan B only. However, all revenues, assets and
potential claims under ADA and insurance policies have already been assigned to EIB as well as all bank
accounts have been pledged to EIB as security. Furthermore, AIA is obliged to create security interest over
any asset of the Company to the EIB under the finance documents.
In the context of the partial release of the Greek State’s Guarantee, EIB has charged a step-up margin of 30
bps on the initial interest rate applicable to the balance of Loan A. The weighted average interest rate for all
tranches under Loan A is 6.41%, whereas the relevant figure for Loan B is 6,12%.
All the covenants set under the EIB Master Facility Agreement have been fulfilled as of 31 December 2013.
The amortised cost of the long term financial liabilities at fixed interest rates (i.e. EIB Loan) is determined using
the eective interest rate method, by discounting the future contractual cash flows with the eective interest
rate applied to those liabilities. The fair value of the financial liabilities at fixed interest rates is determined by
discounting the future contractual cash flows with the current mid-swap interest rate for the average loan life
period of such liabilities. The fair value measurement of the financial liabilities is categorised as Level 2.
Fair value of the borrowings 2013 2012
Carrying amount 565,376,960 623,236,490
Fair value 624,718,777 770,186,297
Excess of fair value over carrying amount (59,341,817) (146,949,807)
All borrowings are denominated in Euro, the functional currency of the Company.
5.21 Employee retirement benefits
In accordance with Greek labour law, employees are entitled to compensation payments in the event of
dismissal or retirement with the amount of payment varying depending on the employee’s compensation,
length of service and manner of termination (dismissal or retirement). Employees who resign or are
dismissed with cause are not entitled to termination payments. The amount payable in the event of
retirement is equal to 40% of the amount which would be payable upon dismissal without cause.
45 of 58 Financial Statements as at 31 December 2013 (Amounts in Euros unless otherwise stated).
5.20 Bank loans
Borrowings are analysed as follows:
Analysis of loans 2013 2012
Long term loans
EIB loan 503,900,970 565,376,960
Total long term loans 503,900,970 565,376,960
Short term loans
EIB loan 61,475,990 57,859,530
Accrued interest & related expenses 3,201,852 2,311,285
Total short term loans 64,677,842 60,170,815
Total bank loans 568,578,812 625,547,775
AIA and EIB, under a supplemental agreement signed on 19 December 2008 between them, agreed to
partial release the Greek State’s Guarantee on the outstanding balance of EIB Loan and to modify certain
terms of the EIB Master Facility Agreement related to the applicable interest rates. The modified terms are
effective from 31 July 2009 and include the consolidation and division of the outstanding balance of the
initial loan into two loans, Loan A and Loan B. As of 31 December 2013 the outstanding balance of Loan A
was €126.750.756 and Loan B €438.626.204.
EIB will benefit from a Greek State Guarantee in respect of Loan B only. However, all revenues, assets and
potential claims under ADA and insurance policies have already been assigned to EIB as well as all bank
accounts have been pledged to EIB as security. Furthermore, AIA is obliged to create security interest over
any asset of the Company to the EIB under the finance documents.
In the context of the partial release of the Greek State’s Guarantee, EIB has charged a step-up margin of 30
bps on the initial interest rate applicable to the balance of Loan A. The weighted average interest rate for all
tranches under Loan A is 6.41%, whereas the relevant figure for Loan B is 6,12%.
All the covenants set under the EIB Master Facility Agreement have been fulfilled as of 31 December 2013.
The amortised cost of the long term financial liabilities at fixed interest rates (i.e. EIB Loan) is determined using
the eective interest rate method, by discounting the future contractual cash flows with the eective interest
rate applied to those liabilities. The fair value of the financial liabilities at fixed interest rates is determined by
discounting the future contractual cash flows with the current mid-swap interest rate for the average loan life
period of such liabilities. The fair value measurement of the financial liabilities is categorised as Level 2.
Fair value of the borrowings 2013 2012
Carrying amount 565,376,960 623,236,490
Fair value 624,718,777 770,186,297
Excess of fair value over carrying amount (59,341,817) (146,949,807)
All borrowings are denominated in Euro, the functional currency of the Company.
5.21 Employee retirement benefits
In accordance with Greek labour law, employees are entitled to compensation payments in the event of
dismissal or retirement with the amount of payment varying depending on the employee’s compensation,
length of service and manner of termination (dismissal or retirement). Employees who resign or are
dismissed with cause are not entitled to termination payments. The amount payable in the event of
retirement is equal to 40% of the amount which would be payable upon dismissal without cause.
45 of 58 Financial Statements as at 31 December 2013 (Amounts in Euros unless otherwise stated).
