Interest income and expenses are allocated to the period to which they relate based on time proportionality, using the effective interest method. Construction period interest is applied to investment projects with estimated durations of more than 12 months.
|
€ Million |
2024 |
2023 |
|
Financial income |
6 |
19 |
|
Total financial income |
6 |
19 |
|
Other financial expenses |
52 |
40 |
|
Total financial expenses |
52 |
40 |
|
Total, net financial expenses |
-46 |
-21 |
Financial expenses mainly consist of interest payments related to loans. For further details on these loans, please refer to note 22 ‘Interest-bearing liabilities (non-current)’ and note 28 ‘Interest-bearing liabilities (current)’.
The increase in the negative balance of financial income and expenses is mainly attributable to a decrease in interest income on excess liquidity in money market funds, deposits and bank accounts. In addition, interest expenses increased mainly due to the issuance of a €500 million nominal green bond with a coupon of 3.50% in May 2024. In addition, the interest expense on the 2023 green bond is included for a full year in financial income and expenses in 2024. This is offset by a reduction in interest expenses due to the redemption of the listed bond of €500 million nominal value with a coupon of 1.50% in October 2023.