Group equity
Share capital
Stedin Holding N.V.’s authorised share capital is €2 billion, divided into 20 million shares with a nominal value of €100 each. At 31 December 2020 and 2019, 4,970,978 shares had been issued and fully paid.
Share premium
Stedin Holding N.V. (formerly Eneco Holding N.V.) was incorporated in 2000. At that time, the shareholders of N.V. Eneco acquired a capital interest in the company by contributing their capital interests in N.V. Eneco to Stedin Holding N.V. Insofar as the value of that interest exceeded the nominal value of the shares, the excess value was taken to share premium. The share premium reserve can be regarded as paid-up share capital.
The share premium reserve was used for unbundling the energy company Eneco in the form of a repayment in kind to the shareholders.
Revaluation reserve
The revaluation reserve relates to the revaluation of networks and network-related assets at fair value. The difference between depreciation based on the revalued book value and depreciation based on the original historical cost, less deferred tax, was transferred from the revaluation reserve to retained earnings. The revaluation reserve is not freely at the disposal of the shareholders. The revaluation reserve amounted to €662 million at year-end 2020 (2019: €720 million). In 2020, €29 million was withdrawn from the revaluation reserve (to be used for the deferred tax liability) as a consequence of the adjustment of the corporate income tax rate.
Legal reserve
A legal reserve is included in group equity for the amount of the book value of the internally developed intangible assets.
Cash flow hedge reserve
The cash flow hedge reserve is not freely at the disposal of the shareholders. More information on the movements and the underlying hedging relationships is set out in note Derivative financial instruments and cash flow hedge reserve.
Perpetual subordinated bond loan
On 1 December 2014, Stedin Holding N.V. issued a perpetual subordinated bond loan (‘Perpetual Fixed Rate Reset Securities’) with a total nominal amount of €500 million at an annual coupon interest of 3.25% and an issue price of 99.232%. This resulted in net proceeds of €496 million. Directly attributable costs of €3 million were deducted from these proceeds, resulting in an addition of €493 million to the group equity in 2014. The bonds are listed on the Euro MTF Market of the Luxembourg stock exchange. On 31 December 2020, the market value was €526 million. The book value at year-end 2020 was €501 million, which is the nominal principal amount including €1 million in accrued interest.
The perpetual subordinated bond loan is regarded as an equity instrument and is subordinated to all of Stedin Group’s creditors but has certain preferences over the shareholders in the event of the company being wound up. Stedin Holding N.V. has no contractual obligation to redeem the loan. Any payment of current or deferred coupon interest is conditional and dependent on distributions to shareholders. Consequently, the bondholders cannot force Stedin Holding N.V. to pay the coupon interest or to redeem all or part of the loan.
