Note 29. Financial liabilities

The following table shows the composition of financial liabilities as at December 31:

In the 2012 financial year, the Lenzing Group issued private placements with an issue volume of EUR 200,000 thousand. The terms cover 4 and 7 years with fixed and floating interest rates, respectively, as well as a term of 10 years with fixed interest. The average term is approximately 6 years. The Lenzing Group repaid EUR 40,500 thousand of the existing private placements as scheduled in 2016. In the 2015 financial year, the Lenzing Group reached an agreement to refinance its private placements with a corresponding volume increase. Existing private placements of EUR 89,500 thousand were terminated and re-issued at extended terms. Additional private placements of EUR 60,500 thousand were also issued. Overall these transactions involved the issue of private placements totaling EUR 150,000 thousand, which have an average term of 7 years. In the 2022 financial year EUR 72,000 thousand (2021: EUR 56,000 thousand) were repaid.

In the 2019 financial year, the Lenzing Group issued further private placements with an issue volume of EUR 375,000 thousand and USD 45,000 thousand. A term of 5 to 15 years with fixed and floating interest rates was agreed.

In the 2020 financial year, the Lenzing Group issued further private placements with an issue volume of EUR 114,000 thousand and USD 20,000 thousand. Terms of 5 to 7 years with fixed and floating interest rates were agreed.

In 2020, a loan of EUR 200,000 thousand was arranged with Oesterreichische Kontrollbank. A term of 3 to 7 years with fixed and floating interest rates was agreed.

In 2021, a loan of EUR 160,000 thousand was arranged with Oesterreichische Kontrollbank. A term of 2 to 7 years with fixed and floating interest rates was agreed.

The financing for the construction of the dissolving wood pulp plant in Brazil was secured in the form of loans in the 2020 financial year (volume in USD 1,147,200 thousand). As at December 31, 2022, EUR 1,023,700 thousand (December 31, 2021: EUR 739,462 thousand) of the loans were used. These liabilities are collateralized by pledged property, plant and equipment in the amount of EUR 34,922 thousand (December 31, 2021: EUR 9,558 thousand) and biological assets in the amount of EUR 127,735 thousand (December 31 2021: EUR 95,767 thousand). In addition, the shares in LD Celulose S.A., Indianópolis, Brazil were pledged for the financing of the pulp mill. Details on the existing financial covenants are explained in note 36.

The next interest rate adjustment for the floating rate loans and partially fixed rate loans will take place within the next six months, depending on the loan agreement. The conditions for loans that can be utilized multiple times (revolving loans) are fixed for a certain period and generally carry floating interest rates.

Other loans primarily involve obligations to the Austrian fund for the promotion of research in industry (“Forschungsförderungsfonds der gewerblichen Wirtschaft”) and the ERP fund as well as loans from non-controlling shareholders.