On 25 September 2018, Clariant issued four certificates of indebtedness with a total amount of EUR 265 million (CHF 299 million). These certificates have the following terms: EUR 92 million for 5.5 years at a fixed interest rate of 1.194% p.a., EUR 102 million for 7 years at a fixed interest rate of 1.548% p.a., EUR 54 million for 7 years at a variable interest rate (6-months-Euribor + 0.95% p.a.), EUR 17 million for 10 years at a fixed interest rate of 2.087% p.a..

On 26 September 2018, a bond issued in 2012 in the amount of CHF 250 million reached maturity and was repaid.

On 24 January 2017, a bond issued in 2012 in the amount of EUR 500 million (CHF 537 million) reached maturity and was repaid.

On 9 June 2017, a bond issued in 2011 in the amount of CHF 100 million reached maturity and was repaid.

Valuation. Non-current financial debt is recognized initially at fair value, net of transaction costs incurred. Financial debt is subsequently stated at amortized cost. There are no long-term financial liabilities valued at fair value through profit and loss.

Fair values of straight bonds are determined by quoted market prices (Level 1 in the fair value hierarchy).

Certificates of indebtedness and other financial debts are recorded at notional amounts, which are a reasonable approximation of the fair values.

Covenants. For the covenants please refer to note 3.1 Financial risk factors.

Exposure of the Group’s borrowings to interest rate changes

• Bonds: the interest rates of all bonds are fixed.
• Certificates of indebtedness: the major part of the existing certificates of indebtedness has a fixed coupon.
• Liabilities to banks and other financial institutions consist of bank loans with fixed interest rates mainly.

Collateral. In 2018 and 2017, no assets were pledged as collateral.