22. Interest-bearing liabilities (non-current)

Non-current interest-bearing liabilities include borrowings that are available to Enexis for a period longer than one year. The amounts for repayments due within one year are included in the current interest-bearing liabilities.

For more information on the non-current and current interest-bearing liabilities, please refer to note 31. Financing policy and risks associated with financial instruments. 

The total nominal value of listed bonds with a term > 1 year amounted to € 2,500 million; deducting the costs to be amortised from these loans results in a residual value of € 2,484 million.

Enexis Holding N.V. issued a € 500 million green bond with an interest rate of 3.625% in June 2023. Enexis Holding N.V. used the bond for investments in grid expansions and upgrades that are necessary to accommodate renewable energy, for distribution automation, smart meters, and for its sustainable buildings. In connection with the issue of this green bond, the 2020 Green Finance Framework was updated in April 2023 taking into account relevant trends. This Green Finance Framework is completely in accordance with the EU Taxonomy. This was externally validated and confirmed by ISS ESG. With this, Enexis demonstrates that it delivers a large contribution to sustainability and has a positive impact on a sustainable society. For more information regarding the terms and conditions of the issued green bond reference is made to the Final Terms and the Green Finance Framework on the Enexis investor relations website.

The carrying value of the convertible hybrid shareholders’ loan amounted to € 500 million at year-end 2023. The convertible hybrid shareholders’ loan was issued in 2020 in two tranches. Tranche A was issued on 29 July 2020 with a nominal value of € 422 million and an interest rate of 2.15%. Tranche B was issued on 30 November 2020 with a nominal value of € 78 million and an interest rate of 1.40%. Both tranches have a maximum term to maturity up to 30 November 2080. An interest revision on 30 November 2030 and after that every 10 years applies for both tranches. Early redemption is possible at each interest revision or under agreed conditions.

Enexis Holding N.V. has the right to convert the loan into shares if one of the credit ratings falls below Enexis's policy level (A/A2) or if it is threatened with a downgrade under credit watch. Enexis Holding N.V. can also obtain the right to convert the loan into shares in other cases with the consent of at least two-thirds of the shareholders. If Enexis Holding N.V. chooses to convert the loan into shares, then the nominal value of the loan (including still to be paid interest at that point in time) will be converted into an equal market value of the shares whereby the market value of the shares will be determined by an independent party. The conversion right is a right but not an obligation of Enexis Holding N.V.

The convertible hybrid shareholders’ loan concerns a hybrid financial instrument in which various derivatives are embedded in the base contract. The embedded derivatives concern, for example, the conditional right of Enexis to convert the loan into shares as well as the conditional right of Enexis to redeem the loan earlier. Based on the assessment of these embedded derivatives, Enexis concludes that the embedded derivatives do not have to be separated from the base contract and that the whole convertible hybrid shareholders’ loan must be recognised as a non-current interest-bearing liability with valuation at amortised cost. Enexis expects that on 30 November 2030 use shall be made of the option to repay the convertible hybrid shareholders’ loan earlier. For this reason, a term to maturity up to 30 November 2030 has been taken into account in determining the amortised cost.

Lease liabilities amounted to € 91 million at year-end 2023, of which € 25 million is classified as the current portion. Lease liabilities are recognised at the present value of the remaining lease payments, discounted at the marginal interest rate. The weighted average marginal interest rate for the lease liabilities at year-end 2023 was 1.1%. The financial expenses in connection with leases amounted to € 1 million for 2023. The average remaining term of the liability arising from the right-of-use assets at year-end 2023 was 3.2 years. The remaining term of the lease liabilities can be broken down as follows:

The table below shows the changes in the lease liability for 2023.

The comparative overview for 2022 is as follows: