Note 13 Interest-bearing debt

The movements in new loans, repayments and security deposit repayments during the year resulted in cash flows; the other movements did not result in cash flows during the year.

Loans from the Province of Friesland and three municipalities

In consultation with the provincial authorities for the Province of Friesland, the loan of €32 million with an indefinite term and at a fixed annual rate of interest of 8% has been converted into a loan with a term up to 31 December 2028, with effect from 1 April 2023, under the same conditions. The loans from three municipalities (total of €9 million and a fixed interest rate of 10%) were also converted in the same way, with a term from 29 December 2023 to 30 November 2029.

Under IFRS, these conversions must be regarded as new loans and must be recognised at market value (fair value). Given that there is no active market with a quoted price, the difference between the market value and the redemption value has been deducted from this market value. The annual interest expense is based on the agreed interest rate on the redemption value. The fair value of the loan from the Province of Friesland, at the market rate of 3.14%, was €40 million on 1 April 2023. The fair value of the loans from the three municipalities at the end of 2023 was €11 million at a market rate of 5.16%.

The carrying amount of the non-current and current interest-bearing debt is as follows:

Short and long-term interest-bearing debt

The short-term interest-bearing debt, amounting to €901 million as at year-end 2023 (2022: €426 million), is made up of the current portion of the bond loans (€400 million), commercial paper issued (€500 million) and the current portion of a green loan (€1 million).

On 13 June 2023, Alliander issued green bonds with a total value of €500 million and a term of 5 years. Bonds were issued at a price of 99.289% and a coupon rate of 3.25%. The revenue will be used to enable more investments in the power grid for the energy transition. Prior to issuing green bonds, Alliander renewed its Green Finance Framework in August 2022.

As at year-end 2023, a carrying amount of €2,587 million (face value €2,600 million) had been issued under the EMTN programme. The bonds issued under the EMTN programme are listed on Euronext Amsterdam.

At the end of 2023, €500 million of current debt securities were outstanding under the ECP programme. (2022: €200 million).

Maturities of interest-bearing debt