In February 2019 the Group issued RUB 5,000 exchange-registered corporate bonds series 001P-04 with 8.50% coupon rate and put-option in 2.5 years.
In February 2019 the Group successfully passed the put-option on the exchange-registered corporate bonds series BO-07 in the amount of RUB 5,000 with the new annual rate for the next 6 semi-annual coupon periods fixed at 8.55%.
In April 2019 the Group issued RUB 5,000 exchange-registered corporate bonds series 001P-05 with 8.45% coupon rate and put-option in 3 years.
In April 2019 the Group successfully passed the put-option on the exchange-registered corporate bonds series BO-04 in the amount of RUB 5,000 and bought back RUB 2,850 from the issue. For the remaining RUB 2,150 the new annual rate for the next 3 semi-annual coupon periods was fixed at 8.35%.
In May 2019 the Group successfully passed the put-option on the exchange-registered corporate bonds series BO-06 in the amount of RUB 5,000 and bought back RUB 3,799 from the issue. For the remaining RUB 1,201 the new annual rate for the next 7 semi-annual coupon periods was fixed at 8.45%.
In September 2019 the Group issued RUB 10,000 exchange-registered corporate bonds series 001P-06 with 7.40% coupon rate and put-option in 2.5 years.
In October 2019 the Group successfully passed the put-option on the exchange-registered corporate bonds series 001P-01 in the amount of RUB 15,000 and bought back RUB 14,904 from the issue. For the remaining RUB 96 the new annual rate for the next 7 semi-annual coupon periods was fixed at 7.30%.
In November 2019 the Group issued RUB 5,000 exchange-registered corporate bonds series 001P-07 with 6.65% coupon rate and put-option in 2.5 years.
In December 2019 the Group issued two exchange-registered corporate bonds series 001P-08 and 001P-09 in the total amount of RUB 10,000 with 6.70% coupon rate and put-option in 3 years.
The weighted average effective interest rate on X5’s total borrowings for the year ended 31 December 2019 comprised 7.94% per annum (year ended 31 December 2018: 8.39%).
All borrowings at 31 December 2019 are shown net of related transaction costs of RUB 134 which are amortised over the term of the loans using the effective interest method (31 December 2018: RUB 166). Borrowing costs capitalised for the year ended 31 December 2019 amounted to RUB 71 (for year ended 31 December 2018: RUB 314). The capitalisation rate used to determine the amount of borrowing costs eligible for capitalisation was approximate to weighted average effective interest rate for the period.
Change in total borrowings in amount of RUB 20,169 in 2019 equals to the proceeds from borrowings in amount of RUB 97,540, repayment of borrowings in amount of RUB 77,502 (the Consolidated Statement of Cash Flows) plus amortisation of transaction costs in amount of RUB 131. Changes in lease liabilities which also form liabilities arising from financing activities are disclosed in the Note 11.
Change in total borrowings in amount of RUB 13,468 in 2018 equals to the proceeds from borrowings in amount of RUB 108,054, repayment of borrowings in amount of RUB 94,810 (the Consolidated Statement of Cash Flows) plus amortisation of transaction costs in amount of RUB 210 and other non-cash changes of RUB 14.
In accordance with a few loan agreements the Group maintains an optimal leverage ratio by tracking covenant: the maximum level of Net Debt/EBITDA (4.00/4.25 during 2 quarters after acquisition). The Group’s Eurobond documentation implies 3.75 leverage ratio threshold but with additional permitted indebtedness baskets and exclusions. At 31 December 2019 the Group complied with this covenant and Net Debt/EBITDA was equal to 1.71 (31 December 2018: 1.70). According to all loan agreements and Eurobond documentation EBITDA is calculated under IAS 17.