13 Financial Liabilities

In 2017, a promissory note (German Schuldschein) of €150 million and current loans in China were repaid on schedule and refinanced with a new investment loan for €200 million. Ongoing repayments of investment loans totaled €16 million. In the second half of 2017, WACKER repaid a further €200 million investment loan on schedule. Additionally, bank loans of ¥10 billion (€75.3 million) were repaid. Loans from minority shareholders in the amount of SG$61.6 million (€41.9 million) were also disposed of in the course of the deconsolidation of Siltronic.

No collateral exists for the financial liabilities, nor are they secured through liens or similar rights. Some of the liabilities to banks are fixed-interest while others have variable interest rates. Moreover, some of the liabilities to banks were granted on condition that particular covenants be complied with.

The liabilities to banks comprise the following:

Other financial liabilities comprise the following:

The carrying amounts of the current financial liabilities correspond to the repayment amounts. With the exception of the euro-denominated investment loan in the amount of €48 million, all the loans fall due on maturity.

The following table shows the future redemption and interest payments for the bank liabilities and other financial liabilities.

There are also unused long-term lines of credit amounting to €901.1 million (€801.1 million a year earlier), where all the conditions for utilization have been met. They include a promissory note (German Schuldschein) in the amount of €300 million issued by WACKER in December 2017 and disbursed in January 2018.

As of the reporting date, the future minimum lease payments under finance lease agreements amounted to:

There are no conditional lease payments from finance leases.

Wacker Chemie AG has capitalized a finance lease for the leased CCGT (combined-cycle gas turbine) power station at its Burghausen site. The lease for the power station is due to expire in 2019 at the latest. WACKER has the right to acquire the power station at a price oriented to book values in accordance with German commercial law. If WACKER acquires this power station, it may not be sold to a third party for five years.

WACKER also has leasing agreements for several technical facilities that qualify as finance leases and were capitalized accordingly. Here, too, the Group in some cases has rights of preemption and lease rollover options.

The lease agreements serve to simplify the procurement and financing of operating materials and fixed assets. The long-term commitment that they involve, however, leads to a constant future outflow of cash from which the company cannot extract itself.