F.12. Financial liabilities
| (CZK million) | 31.12.2015 | 31.12.2014 |
|---|---|---|
| Financial liabilities at fair value through profit or loss | 2,073 | 3,203 |
| Financial derivatives | 2,066 | 3,173 |
| Other | 7 | 30 |
| Financial liabilities at amortised cost | 92,417 | 86,360 |
| Financial liabilities at amortised cost related to investment contracts | 87,661 | 80,685 |
| Bonds and loans | 1,391 | 500 |
| Net asset value attributable to unit holders | 798 | 1,367 |
| Other | 2,567 | 3,808 |
| Total | 94,490 | 89,563 |
| Current portion | 32,356 | 31,479 |
| Non-current portion | 62,134 | 58,084 |
Of which relates to the Transformed fund:
| (CZK million) | 31.12.2015 | 31.12.2014 |
|---|---|---|
| Financial liabilities at fair value through profit or loss | 805 | 1,032 |
| Financial derivatives | 805 | 1,032 |
| Financial liabilities at amortised cost | 87,648 | 80,672 |
| Financial liabilities at amortised cost related to investment contracts | 87,648 | 80,672 |
| Total | 88,453 | 81,704 |
| Current portion | 31,514 | 30,421 |
| Non-current portion | 56,939 | 51,283 |
In December 2012, the Group issued a fixed-coupon bond in the nominal value of CZK 500 million. This bond issue bears an interest rate of 1.83% p.a. Transaction costs related to the bond issue amounted to CZK 2.5 million. The bond is quoted on secondary market of Prague Stock Exchange and its maturity will be in the year 2017.
- Solitaire a.s. in the amount of CZK 280 million (2014: CZK 306 million),
- Apollo a.s. of CZK 649 million (2014: CZK 805 million),
- Pařížská 26 s.r.o. of CZK 236 million (2014: CZK 263 million).
Bank loan provided to CITY EMPIRIA a.s. was refinanced by Generali CEE Holding B.V. in 2015. It amounts to CZK 891 million as at 31 December 2015 (2014: CZK 1,032 million) and is reported within Bonds and loans.
As collateral to the loans, the Group pledged the real estate companies’ investment property, other receivables, fixed assets, shares, receivables from bank accounts, service charge account and claims arising from lease agreements, existing and future claims arising from the insurance agreement of the companies.
Fair value measurement of Financial liabilities at fair value through profit or loss as at the end of the reporting period:
| 31.12.2015 | ||||
|---|---|---|---|---|
| (CZK million) | Level 1 | Level 2 | Level 3 | Total |
| Financial liabilities at fair value through profit or loss | – | 2,073 | – | 2,073 |
| Financial derivatives | – | 2,066 | – | 2,066 |
| Other FVTPL | – | 7 | – | 7 |
| Total | – | 2,073 | – | 2,073 |
| 31.12.2014 | ||||
|---|---|---|---|---|
| (CZK million) | Level 1 | Level 2 | Level 3 | Total |
| Financial liabilities at fair value through profit or loss | – | 3,203 | – | 3,203 |
| Financial derivatives | – | 3,173 | – | 3,173 |
| Other FVTPL | – | 30 | – | 30 |
| Total | – | 3,203 | – | 3,203 |
Of which relates to the Transformed fund:
| 31.12.2015 | ||||
|---|---|---|---|---|
| (CZK million) | Level 1 | Level 2 | Level 3 | Total |
| Financial liabilities at fair value through profit or loss | – | 805 | – | 805 |
| Financial derivatives | – | 805 | – | 805 |
| Total | – | 805 | – | 805 |
| 31.12.2014 | ||||
|---|---|---|---|---|
| (CZK million) | Level 1 | Level 2 | Level 3 | Total |
| Financial liabilities at fair value through profit or loss | – | 1,032 | – | 1,032 |
| Financial derivatives | – | 1,032 | – | 1,032 |
| Total | – | 1,032 | – | 1,032 |
There were no significant transfers between Levels of fair value measurement categories in 2015 and 2014 for the Group and also for the Transformed fund.
Fair value measurement of Financial liabilities at amortised cost as at the end of the reporting period:
| 31.12.2015 | ||||
|---|---|---|---|---|
| (CZK million) | Level 1 | Level 2 | Level 3 | Total |
| Financial liabilities at amortised costs | – | 4,857 | 87,661 | 92,518 |
| Financial liabilities at amortised cost related to investment contracts | – | – | 87,661 | 87,661 |
| Bonds and Loans | – | 1,396 | – | 1,396 |
| Net asset value attributable to unit holders | – | 798 | – | 798 |
| Other | – | 2,663 | – | 2,663 |
| Total | – | 4,857 | 87,661 | 92,518 |
| 31.12.2014 | ||||
|---|---|---|---|---|
| (CZK million) | Level 1 | Level 2 | Level 3 | Total |
| Financial liabilities at amortised costs | – | 5,684 | 80,685 | 86,369 |
| Financial liabilities at amortised cost related to investment contracts | – | – | 80,685 | 80,685 |
| Bonds and Loans | – | 510 | – | 510 |
| Net asset value attributable to unit holders | – | 1,366 | – | 1,366 |
| Other | – | 3,808 | – | 3,808 |
| Total | – | 5,684 | 80,685 | 86,369 |
Of which relates to the Transformed fund:
| 31.12.2015 | ||||
|---|---|---|---|---|
| (CZK million) | Level 1 | Level 2 | Level 3 | Total |
| Financial liabilities at amortised cost | – | – | 87,648 | 87,648 |
| Financial liabilities at amortised cost related to investment contracts | – | – | 87,648 | 87,648 |
| Total | – | – | 87,648 | 87,648 |
| 31.12.2014 | ||||
|---|---|---|---|---|
| (CZK million) | Level 1 | Level 2 | Level 3 | Total |
| Financial liabilities at amortised cost | – | – | 80,672 | 80,672 |
| Financial liabilities at amortised cost related to investment contracts | – | – | 80,672 | 80,672 |
| Total | – | – | 80,672 | 80,672 |
Generally, if available and if the market is defined as active, fair value is equal to the market price.
The fair value is determined primarily on the basis of the income approach using discounting techniques.
In particular, the fair value of debt instruments issued by the Group are valued using discounted cash flow models based on the current marginal rates of funding of the Group for similar types of loans, with maturities consistent with the maturity of the debt instruments subject to valuation.
The fair value of financial liabilities at amortized cost related to investment contracts can be assumed to be equal to its carrying amount, since the funds participants have the right in any moment to withdraw the money from their accounts after one year of being members, and the overwhelming majority of the funds members already fulfil such condition. The carrying amount can therefore be considered a reasonable approximation of fair value.
The fair value of such liabilities is therefore classified as level 3.
There were no significant transfers between Levels of fair value measurement categories in 2015 and 2014 both for the Group and also for the Transformed fund.