7 Debentures and notes

Debentures and notes includes issued debt instruments in various currencies under FMO's Debt Issuance Programs. In addition, a subordinated note of €250 million is also included in the Debenture and Notes. Under IFRS this note is classified as financial liability, but for regulatory purposes it is considered as Tier 2 capital. This note was issued on July 15, 2020 with a maturity date of January 15, 2031. The note is issued at 99.764% of the aggregated nominal amount at a fixed coupon rate of 0.625%. The note is non-convertible and can be called on first call date after five years till July 15, 2026.

The following table summarizes the carrying value of the debentures and notes.

 

June 30, 2021

December 31, 2020

   

Debentures and notes under hedge accounting

4,483,421

4,015,469

Debentures and notes valued at AC

1,366,915

1,470,480

Total debentures and notes

5,850,336

5,485,949

The nominal amounts of the debentures and notes are as follows:

 

June 30, 2021

December 31, 2020

   

Debentures and notes under hedge accounting

4,356,668

3,823,783

Debentures and notes valued at AC

1,347,566

1,450,634

Total debentures and notes

5,704,234

5,274,417

The movements can be summarized as follows:

 

2021

Balance at January 1

5,485,949

Amortization of premiums/discounts

5,650

Proceeds from issuance

526,731

Redemptions

-173,429

Changes in fair value

-62,554

Changes in accrued expense

-5,278

Exchange rate differences

73,267

Balance at June 30

5,850,336

Line item 'changes in fair value' represents the fair value changes attributable to the hedge risk in connection with the debentures and notes used for hedge accounting purposes.