Note 6 Interest-bearing liabilities

December 31 (CHF in thousands)

 

2014

2013

Bond 2011–2016 1.25% coupon

nominal value

500,000

500,000

 

discount on issuance

(507)

(787)

Bond 2012–2018 1.5% coupon

nominal value

350,000

350,000

Bond 2011–2021 2.25% coupon

nominal value

350,000

350,000

 

premium on issuance

69

86

Total

 

1,199,562

1,199,299

The 1.25% Bonds, due 2016, the 2.25% Bonds, due 2021 and the 1.5% Bonds, due 2018, pay interest annually in arrears, at fixed annual rates of 1.25 percent, 2.25 percent and 1.5 percent, respectively. The Company has the option to redeem the bonds prior to maturity, in whole, at par plus accrued interest, if 85% of the aggregate principle amount of the bonds has been redeemed or purchased and cancelled.

The bonds, issued prior to January 1, 2013, are stated at their nominal value less any discount or plus any premium on issuance. Bonds are accreted/amortized to par over the period to maturity.

The Company has, through Group Treasury Operations, entered into interest rate swaps with banks to effectively convert the bonds maturing 2016 and 2021 into floating rate obligations.