Capital market and financing risk

Refinancing on the financial market is one of the most important measures open to CA Immo. However, developments have shown that the erosion of trust in a functioning capital market can make the procurement of capital much more difficult. Due to the implementation of Basel III an increasing number of banks reconsider their mortgaging. Therefore, it is assumed that lending will be handled extremely restrictive in future. In addition, some banks currently make market stress test of scattered Eastern European countries or are preparing their exit from the region. Especially in Hungary and Romania refinancing could become more difficult in the upcoming months; however, in Poland and the Czech Republic willingness to finance is a little more stable. Above all, German banks have announced their plans to stop lending outside their home market temporarily, by implication, vice versa in the following years there will be sufficient liquidity in the German market. With the introduction of Solvency II it is assumed that insurance companies will occur increasingly in the financing business, which could provide a slight improvement on the financing sector. For this reason, it is essential that the company has the ability to plan and secure liquidity. As an alternative and supplement to established means of (equity) capital procurement, the company enters into equity partnerships (joint ventures) at project level. Given that the risk of (re)financing may remain a latent factor, detailed liquidity planning has been drawn up for the years ahead. This planning takes particular account of the financial consequences of strategic targets (such as the steady depletion of the project pipeline and real estate sales). The expiry profile of financial liabilities for the CA Immo Group is reasonably stable until business year 2014; loans maturing by that date are linked solely to financing at property or project level. The refinancing of the 6.125 % CA Immo bond 09-14 (ISIN: AT0000A0EXE6) and the convertible bond are scheduled for 2014, provided conversion rights are not exerted.

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