Notes to the Consolidated Financial Statements
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In 2008, a rating downgrade of the collateral provider AIG necessitated additional collateral in the form of US treasury bonds being tendered. These securities are pledged to the investor, Bank of America. In February 2009, a valuation unit for accounting purposes was established by means of a foreign currency loan. The effective date for assessing the intrinsic value of the collateral is always on 15 January of every year. The securities and associated foreign currency loan expired in 2014. Since this point in time, Wiener Linien has been purchasing rolling, one-year US government bonds in an amount that exactly reflects the difference to be made up between the termination value and the equity securities deposit account. This difference fluctuates every year, with the tendency to decline as the transaction matures. At the same time, a foreign currency exchange forward contract is concluded every year, which enables US dollars to be available in a year to be converted without any exchange rate risk. By means of this approach, it is possible to terminate the arrangement annually (e.g. if the underlying CBL transaction no longer exists) with the same low level of risk as the annual adjustment made to the respective securitisation requirement. • On the initiative of the investor, in 2006, the Trusts Fleetbank 1998-1 and -2 associated with the first US lease transaction were terminated prematurely and the relevant liabilities vis-à-vis the investor were settled through the assignment of the US treasury bonds held. • In January 2009, the second tranche of the third US lease transaction was terminated prematurely. However, one component of the transaction (B-Kreditseite), with Bank Austria UniCredit Group as the lender, including the associated PUA (PUA depot holder: BAWAG-PSK), remains in effect . Due to the elimination of the underlying transaction, the relevant amounts were de-recognised as contingent liabilities and recognised on the balance sheet as amounts with identical volumes carried as liabilities due to banks and receivables arising out of non-current financial assets respectively. This PUA expired at the end of 2013 and is no longer recognised on the balance sheet. • In May 2009, the fourth US lease transaction was terminated prematurely. The remaining component of the transaction (B-Kreditseite), with Kommunalkredit Austria AG as the lender and Portigon as the PUA securities account holder, is recognised on the balance sheet in the same manner as the second tranche of the third US cross-border lease transaction. Given that this transaction involved the inclusion of 20 vehicles owned by Wiener Lokalbahnen AG by means of a power of attorney issued by Wiener Linien acting in its own name but on the account of a third
party, these include receivables and payables relating to the transactions (B-Kredit / B-PUA and pro rata WLB shares) irrespective of a later transfer of risks and costs on the part of Wiener Lokalbahnen AG. For commercial reasons, components of the payment undertaking agreements relating to equity remained effective, with the repayment in USD, however, being in favour of Wiener Linien and completed by the end of 2013. At the end of 2014, the public guarantee obligation of the German state of North Rhine-Westphalia, and hence the prepayment instrument (B-PUA) with WestLB (now Portigon), expired, while the outstanding loan would still have been outstanding until 2026. In December 2014, it was possible to terminate both the borrowed capital prepayment instrument and the associated loan definitively following negotiations with the contract partners. • On the initiative of the investor, in June 2009, the remaining tranches of the second US cross-border lease transaction (Trusts FA 1998-1 and 2) were terminated prematurely and the relevant liability due to the investor was settled by means of the assignment of the US treasury bonds held. The payment undertaking agreement and the loan were also terminated (resulting in the elimination of the contingent liability). • In July 2011 and in connection with the fifth US lease transaction (Trusts FT 2003-1 and 2), an exchange of the equity PUA for US treasury bonds was implemented with SwissRE Financial Products Corp. As a result of the contractual arrangements, the relevant amounts were recognised in identical volumes as liabilities vis-a-vis US Trusts and recognised on the balance sheet as non-current financial assets rather than as contingent liabilities. Following an offer from the investor, it was possible to completely settle this transaction in August 2016. • I n July 2015 and in connection with the third US cross-border lease transaction (Trusts FB 1999-1 and 2), an exchange of the equity PUA for US treasury bonds was implemented with UniCredit Bank Austria. Due to the circumstances regulated in the contract, the relevant amounts were recognised in identical volumes as liabilities vis-a-vis US trusts and recognised as non-current financial assets. The existing payment obligation visa-vis UniCredit Bank Austria under contingent assets was recognised as an additional item on the balance sheet under ‘Other lendings’. The contractually agreed payments were hedged by foreign exchange futures to mitigate foreign exchange risk. These enable US dollars to be available at a particular point in time to be converted without any exchange rate risk. • In 2016, the first tranche of the first US lease transaction (Trust SS 1998-1) was closed out by means of an EBO.