5.3 Financial debt
CHF million | Fixed-rate bonds | Bank debt | Lease liabilities | Other financial debt | Total December 31, 2024 | Total December 31, 2023 |
|---|---|---|---|---|---|---|
Maturity | ||||||
Less than 1 year | 0.0 | 92.5 | 8.7 | 3.7 | 104.9 | 198.1 |
1 to 5 years | 169.5 | 0.0 | 27.6 | 6.0 | 203.1 | 118.0 |
5 or more years | 0.0 | 0.0 | 25.7 | 0.0 | 25.7 | 11.0 |
Financial debt | 169.5 | 92.5 | 62.0 | 9.7 | 333.7 | 327.1 |
On November 27, 2024, Rieter placed a fixed-rate bond amounting to CHF 70.0 million. This bond has a term of five years with a maturity date on November 27, 2029, a fixed interest rate of 3.5 percent p.a. and is listed on the SIX Swiss Exchange. The fair value of this bond amounted to CHF 71.5 million at December 31, 2024. The effective interest expenses in the amount of CHF 0.4 million were charged to the income statement 2024. On November 25, 2021, Rieter issued a fixed-rate bond with a nominal value amounting to CHF 100.0 million. This bond has a term of six years with a maturity date on November 24, 2027, a fixed interest rate of 1.4 percent p.a. and is listed on the SIX Swiss Exchange. The fair value of this bond amounted to CHF 98.0 million at December 31, 2024 (December 31, 2023: CHF 98.4 million). The effective interest expenses in the amount of CHF 1.4 million were charged to the income statement 2024 (2023: CHF 1.4 million). On September 17, 2024, Rieter repaid the existing fixed-rate bond in the amount of CHF 75.0 million. The bond had a term of four years, a fixed interest rate of 1.55 percent and was listed on the SIX Swiss Exchange. The effective interest expenses were CHF 0.9 million in 2024 (2023: CHF 1.2 million).
By currency, financial debt is divided up as follows:
CHF million | December 31, 2023 | December 31, 2024 |
|---|---|---|
CHF | 265.2 | 249.6 |
EUR | 53.5 | 52.7 |
INR | 7.7 | 30.7 |
Other currencies | 0.7 | 0.7 |
Financial debt | 327.1 | 333.7 |
Financial debt changed as follows:
CHF million | 2023 | 2024 | |
|---|---|---|---|
Financial debt at January 1 | 461.7 | 327.1 | |
Acquisitions1 | No cash flow | – | 3.1 |
Proceeds from issue of fixed-rate bond | Cash flow | – | 69.9 |
Repayment of fixed-rate bond | Cash flow | – | – 75.0 |
Repayments of bank and other financial debt | Cash flow | – 139.4 | – 25.3 |
Recognition of other financial debt | No cash flow | – | 7.1 |
Recognition of lease liabilities2 | No cash flow | 15.5 | 35.0 |
Repayments of lease liabilities | Cash flow | – 5.5 | – 7.7 |
Changes in leases | No cash flow | 0.0 | – 1.5 |
Changes in amortized cost | No cash flow | 0.3 | 0.1 |
Other changes in values3 | No cash flow | – 1.5 | – 0.2 |
Currency translation differences | No cash flow | – 4.0 | 1.1 |
Financial debt at December 31 | 327.1 | 333.7 |
1See note 2.1.
2This includes the lease liability of the Campus in Winterthur in the amount of CHF 32.7 million.
3Exchange rate differences of financial debt in currencies other than the functional currency of the respective group company.
Material accounting policies
Financial debt is recognized initially at fair value, net of transaction costs incurred. Financial debt is subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the income statement over the term of the obligation using the effective interest rate method. Financial debt is classified as a current liability, unless Rieter has an unconditional, contractually agreed right to defer settlement for at least twelve months after the balance sheet date. For accounting policies in relation to lease liabilities, see note 8.3.