Note 33 Capital Securities
In June 2005, Vattenfall issued Capital Securities, which are reported as interest-bearing non-current liabilities. The maturity of the Capital Securities is perpetual and they are junior to all of Vattenfall’s unsubordinated debt instruments. There is no redemption requirement, although the intention is to repay the loan. The interest is fixed for the initial ten-year period, thereafter a floating rate is applied. The interest is conditional upon, among other things, Vattenfall’s means of paying dividends to shareholders and the key ratio “Interest Coverage Trigger Ratio” amounting to at least 2.5.
| 2008 | 2007 | |
| Balance brought forward | 9,341 | 8,911 |
| Discount allocation | 27 | 18 |
| Translation differences | 1,443 | 412 |
| Balance carried forward | 10,811 | 9,341 |
| 2008 | 2007 | |
| Funds from operations (FFO) | 30,735 | 34,049 |
| Interest paid | 3,846 | 2,902 |
| FFO plus interest paid (a) | 34,581 | 36,951 |
| Interest expenses (b) | 4,151 | 3,325 |
| Interest Coverage Trigger Ratio (a/b) | 8.33 | 11.11 |
