Senior secured bonds
The Group has issued senior secured callable fixed rate bonds for a total of € 200.0 million, within a total
framework amount of € 300.0 million. The maturity date of the bonds is 28 April 2024. The bonds carry a fixed
interest rate of 7.25% per annum. The Group has used the bond proceeds to fully redeem an outstanding bond of
€ 100.0 million on 8 April 2021.
The security for the bonds is a share pledge in respect of all shares in the group companies Azerion Games and
Content Holding B.V., a limited liability company incorporated in the Netherlands, Azerion Tech Holding B.V., a
limited liability company incorporated in the Netherlands, Azerion International Holding B.V., a limited liability
company incorporated in the Netherlands, and a pledge over any material intra-group loans.
In addition, following group companies have entered into the Guarantee Agreement to guarantee the
performance of obligations of the Issuer: Azerion Games and Content Holding B.V., a limited liability company
incorporated in the Netherlands, Azerion Tech Holding B.V., a limited liability company incorporated in the
Netherlands, Azerion International Holding B.V., a limited liability company incorporated in the Netherlands,
18. Borrowings
Azerion Group N.V. Annual Report 2022 Consolidated financial statements 116
Azerion Sweden SB AB, a limited liability company incorporated in Sweden, Youda Games Holding B.V., a limited
liability company incorporated in the Netherlands, Voidu B.V., a limited liability company incorporated in the
Netherlands, SPIL Games Group B.V., a limited liability company incorporated in the Netherlands, Azerion Sports
B.V., a limited liability company incorporated in the Netherlands and Keygames Network B.V., a limited liability
company incorporated in the Netherlands and Whow Games GmbH, a limited liability company incorporated in
Germany.
There was an early settlement of Senior Secured Callable Floating Rate Bonds ISIN: SE0013774957. The
amendment related to the bond terms' requirement that they be listed on a regulated exchange within 60 days
of issue. The listing, however, required the Company to issue audited financial statements for 2020. The Company
was in breach of the bond terms and requested the clause stating the deadline for listing the bond on a
regulated exchange be amended to 31 December 2021. The redeemed bond had a maturity of 17 March 2023. The
derecognition led to a loss of € 9.6 million consisting of the call premium of € 4.6 million, the make-whole interest
of € 3.1 million (interest that would have been paid up to the first allowed date) and the remaining difference
between repayment amount and amortised cost including accrued but unpaid interest.
Debt to credit institutions
Included in this balance as of 31 December 2022 are factoring agreements amounting to € 3.0 million (2021: € 2.6
million) and other debt to credit institutions amounting to € 6.6 million (2021: € 5.2 million). The trade receivables
used as security by third parties are maintained within the Group’s assets as the risks and benefits associated
with them are not transferred to such third parties. The factoring companies in particular do not accept the credit
risks. The credit risk is the risk of non-recovery of trade receivables. Under contracts signed with the Group’s
entities, the credit risk remains within the Group.
Next to the factoring agreements, Azerion acquired entities that had governmental aided loans. The total amount
for the 3 governmental aided loans ending 2022 was € 2.6 million (2021: € 3.5 million). The interest rates range
from 0.58% to 2.14% and the maturity dates are between 2023 and 2026. The total amount for other commercial
loans ending 2022 was € 4.0 million (2021: € 0.7 million), with interest rates ranging from 0% to 5.29%. Refer to the
loan schedule overview for further details.