On 22 May 2020, Clariant issued five certificates of indebtedness with the total amount of EUR 197.5 million and CHF 62.5 million. These certificates have terms of 2 years expiring on 23 May 2022 (EUR 114.5 million and CHF 37.5 million) and 5 years expiring on 22 May 2025 (EUR 83 million and CHF 25 million). While a tranche of CHF 62.5 million has a variable interest of 3 months CHF-LIBOR plus spread that ranges between 1.50% and 1.80% and a tranche in the amount of EUR 110.5 million has a variable interest rate of 6 months EURIBOR plus spread that ranges between 1.45% and 1.90%, the fixed interest rate is 1.45% for a tranche in the amount of EUR 87 million.

On 15 April 2019 new bonds in the amount of CHF 200 million were launched with a term of 7 years and an interest rate of 1.125% p.a. fixed.

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 3.1.3 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 mostly consisting of bank loans with fixed interest rates mainly.

Collateral. In 2020, no assets were pledged as collateral (2019: CHF 15 million).