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, 2022

December 31, 2021

   

Debentures and notes under hedge accounting

4,342,023

4,428,818

Debentures and notes valued at AC

1,136,921

997,778

Total debentures and notes

5,478,944

5,426,596

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

 

June 30, 2022

December 31, 2021

   

Debentures and notes under hedge accounting

4,527,902

4,355,318

Debentures and notes valued at AC

1,120,010

983,610

Total debentures and notes

5,647,912

5,338,928

The movements can be summarized as follows:

 

2022

Balance at January 1

5,426,596

Amortization of premiums/discounts

-3,926

Proceeds from issuance

687,382

Redemptions

-568,470

Changes in fair value

-256,586

Changes in accrued expense

-732

Exchange rate differences

194,680

Balance at June 30

5,478,944

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.