F.12. Financial liabilities
| (CZK million) | 31.12.2016 | 31.12.2015 |
|---|---|---|
| Financial liabilities at fair value through profit or loss | 2,570 | 2,073 |
| Financial derivatives | 2,563 | 2,066 |
| Other | 7 | 7 |
| Financial liabilities at amortised cost | 102,252 | 92,417 |
| Financial liabilities at amortised cost related to investment contracts | 92,817 | 87,661 |
| Bonds and Loans | 1,283 | 1,391 |
| Net asset value attributable to unit holders | 917 | 798 |
| Other | 7,235 | 2,567 |
| Total | 104,822 | 94,490 |
| Current portion | 39,352 | 32,356 |
| Non-current portion | 65,470 | 62,134 |
Of which relates to the Transformed fund:
| (CZK million) | 31.12.2016 | 31.12.2015 |
|---|---|---|
| Financial liabilities at fair value through profit or loss | 1,027 | 805 |
| Financial derivatives | 1,027 | 805 |
| Financial liabilities at amortised cost | 92,807 | 87,648 |
| Financial liabilities at amortised cost related to investment contracts | 92,807 | 87,648 |
| Total | 93,834 | 88,453 |
| Current portion | 33,006 | 31,514 |
| Non-current portion | 60,828 | 56,939 |
In December 2012, the Group issued a fixed-coupon bond with 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 the secondary market of the Prague Stock Exchange and its maturity will be in the year 2017.
The loan provided to CITY EMPIRIA a.s. by Generali CEE Holding B.V. amounting to CZK 784 million (2015: CZK 891 million) is reported within “Bonds and Loans”.
Other financial liabilities at amortised cost consist of Deposits received from reinsurers of CZK 1,401 milion (2015: CZK 1,402 milion), the bank loan provided to Green Point Offices a.s. amounting to CZK 649 million (2015: CZK 649 million) and the REPO operation amounting to CZK 5,185 million (2015: CZK 0 million).
Bank loans provided to Solitaire a.s. (2015: CZK 280 million) and Pařížská 26 s.r.o. (2015: CZK 236 million) were fully repaid and refinanced internally.
The Group pledged the building and land, lease receivables from the building and the balance in the bank accounts as collateral to the bank loan.
Fair value measurement of Financial liabilities at fair value through profit or loss as at the end of the reporting period:
| 31.12.2016 (CZK million) | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Financial liabilities at fair value through profit or loss | 20 | 2,550 | – | 2,570 |
| Financial derivatives | 20 | 2,543 | – | 2,563 |
| Other FVTPL | – | 7 | – | 7 |
| Total | 20 | 2,550 | – | 2,570 |
| 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 |
Of which relates to the Transformed fund:
| 31.12.2016 (CZK million) | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Financial liabilities at fair value through profit or loss | – | 1,027 | – | 1,027 |
| Financial derivatives | – | 1,027 | – | 1,027 |
| Total | – | 1,027 | – | 1,027 |
| 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 |
There were no significant transfers between Levels of fair value measurement categories in 2016 and 2015 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. 2016 (CZK million) | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Financial liabilities at amortised cost | – | 9,531 | 92,817 | 102,348 |
| Financial liabilities at amortised cost related to investment contracts | – | — | 92,817 | 92,817 |
| Bonds and Loans | – | 1,350 | – | 1,350 |
| Net asset value attributable to unit holders | – | 917 | – | 917 |
| Other | – | 7,264 | – | 7,264 |
| Total | – | 9,531 | 92,817 | 102,348 |
| 31.12.2015 (CZK million) | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Financial liabilities at amortised cost | – | 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 |
Of which relates to the Transformed fund
| 31.12.2016 (CZK million) | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Financial liabilities at amortised cost | – | – | 92,807 | 92,807 |
| Financial liabilities at amortised cost related to investment contracts | – | – | 92,807 | 92,807 |
| Total | – | – | 92,807 | 92,807 |
| 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 |
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 amortised cost related to investment contracts can be assumed to be equal to its carrying amount, since the fund participants have the right at any moment to withdraw the money from their accounts after one year of being members, and the overwhelming majority of the fund members already fulfil such a 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 2016 and 2015, both for the Group and also for the Transformed fund.