8 Finance expense
CHF million |
| 1st half-year |
| 1st half-year |
|
|
|
|
|
Interest expense payable to banks/insurance companies for liabilities |
| –3.3 |
| –4.6 |
Expense for derivatives |
| –14.6 |
| –10.1 |
Interest expense for bond issues |
| –5.0 |
| –5.0 |
Capitalised building loan interest |
| 0.4 |
| 0.9 |
Financial expense |
| –22.5 |
| –18.8 |
Interest expense for derivatives comprises interest paid of CHF 10.5 million, an ineffective portion of the change in fair value of CHF 2.8 million from interest rate swaps and CHF 1.3 million for an interest rate swap which no longer fulfils the requirements for hedge accounting.
Capitalised building loan interest of CHF 0.4 million (1st half-year 2015: CHF 0.9 million) breaks down into development real estate under construction (CHF 0.2 million) and investment real estate under construction (CHF 0.2 million), applying an average interest rate of 1.90 to 2.10% (1st half-year 2015: 2.10 to 2.30%).