Note 10: Bonds

3 Months Ended

Mar. 31, 2017

NOTE 10: BONDS

Description	EUR (€) bond new I (repaid)	EUR (€) bond new II (parallel) (repaid)
Issuer:	SunVesta Holding AG	SunVesta Holding AG
Type of securities:	Bond in accordance with Swiss law	Bond in accordance with Swiss law
Approval by SunVesta AG BOD:	October 31, 2013	May 19, 2014
Volume:	Up to EUR15,000,000	Up to EUR 15,000,000
Units:	EUR10,000	EUR 10,000
Offering period:	11/07/2013 – 03/31/2014	05/01/14 – 06/30/14
Due date:	December 2, 2016	December 02, 2016
Issuance price:	100%	100 %
Issuance day:	December 2, 2013	December 02, 2013 (retroactive)
Interest rate:	7.25% p.a.	7.25 % p.a.
Interest due dates:	December 2, 2013	December 02
Applicable law:	Swiss	Swiss

EURO (€) Bond new I	EURO Bond (New) 2017	EURO Bond (New) 2016
	$	$

Balances January 1	31,541	6,871,630
Cash inflows	-	-
Cash outflows	-	(6,736,255)
Reclassification from / to Bond (net)	(32,271)	-
Foreign currency adjustments	730	(103,834)
Sub-total	-	31,541
Discounts (commissions paid to bondholders) and debt issuance costs	(588,613)	(588,613)
Accumulated amortization of discounts and debt issuance costs	588,613	563,636
Total accumulated unamortized discounts and debt issuance costs	-	(24,977)
Balances March 31 and December 31 (Carrying value)	-	6,564

EURO (€) Bond new II	EUR Bond new II 2017	EUR Bond new II 2016
	$	$

Balances January 1	511,805	1,658,300
Cash inflows	-	-
Cash outflows	(510,120)	(159,950)
Reclassification from / to Bond (net)	(9,761)	(953,683)
Foreign currency adjustments	8,075	(32,862)
Sub-total	-	511,805
Discounts (commissions paid to bondholders) and debt issuance costs	(174,660)	(174,660)
Accumulated amortization of discounts and debt issuance costs	174,660	140,754
Reclassification from / to Bond (net)	-	-
Total accumulated unamortized discounts and debt issuance costs	-	(33,906)
Balances March 31 and December 31 (Carrying value)	-	477,899

On September 30, 2015, the Company approved the issuance of two new Convertible CHF-bonds.

The major terms and conditions are the following:

Description	Convertible CHF Bond I	Convertible CHF Bond II

Issuer:	SunVesta Holding AG	SunVesta Holding AG
Type of securities:	Senior convertible bonds, convertible into shares of the issuer, in accordance with Swiss law	Senior convertible bonds, convertible into shares of the issuer, in accordance with Swiss law
Approval by SunVesta AG BOD:	September 30, 2015	September 30, 2015
Volume:	Up to CHF 45,000,000	Up to CHF 15,000,000
Denomination:	CHF 5,000	CHF 5,000
Offering period:	October 01, 2015	October 01, 2015
Maturity date:	September 30, 2018	September 30, 2018
Issue price:	100 %	100 %
Redemption price:	100 %	100 %
Issuance date:	October 01, 2015	October 01, 2015
Coupon:	6.00 % p.a.	6.00 % p.a.
Interest due dates:	September 30 of each year, the first time September 30, 2016	September 30 of each year, the first time September 30, 2016
Reference price:	CHF 6.50	CHF 6.50
Initial conversion price:	CHF 8.00	CHF 8.00
Applicable law:	Swiss	Swiss

Convertible CHF BOND I	Convertible CHF Bond I 2017	Convertible CHF Bond I 2016
	$	$

Balances January 1	3,648,383	2,250,048
Cash inflows	-	1,640,887
Cash outflows	-	(103,008)
Foreign currency adjustments	60,262	(105,058)
Reclassification from / to Bond (net)	-	(34,486)
Sub-total	3,708,645	3,648,383
Discounts (commissions paid to bondholders) and debt issuance costs	(240,760)	(136,722)
Accumulated Amortization of discounts and debt issuance costs	133,496	117,652
Reclassification from / to Bond (net)	-	(104,038)
Total Accumulated Unamortized discounts and debt issuance costs	(107,264)	(123,108)
Balances March 31 and December 31 (Carrying value)	3,601,381	3,525,275

In the first quarter of 2016, the Company reclassified $634,186 from Convertible CHF Bond I.

As per date of this report, the Company has realized a cumulative amount of CHF 3.6 million ($3.6 million) related to the CHF Convertible Bond I.

Convertible CHF BOND II	Convertible CHF Bond II 2017 $	Convertible CHF Bond II 2016 $

Balances January 1	36,770,369	26,470,395
Cash inflows	20,079	7,142,850
Cash outflows	(1,795,594)	(787,371)
Foreign currency adjustments	618,871	(1,187,441)
Reclassification from / to Bond (net)	-	5,131,937
Sub-total	35,613,725	36,770,369
Discounts (commissions paid to bondholders) and debt issuance costs	(4,788,078)	(4,890,690)
Accumulated Amortization of discounts and debt issuance costs	2,868,848	2,586,541
Reclassification from / to Bond (net)	-	104,038
Total Accumulated Unamortized discounts and debt issuance costs	(1,919,230)	(2,200,111)
Balances March 31 and December 31 (Carrying value)	33,694,495	34,570,258

In April 2016, Global Care AG (a related party controlled by Dr. Rössler, a Company board member) assumed a liability of CHF 4.5 million due to Aires International Investment Inc., (also a related party controlled by Dr. Rössler). This CHF 4.5 million was subsequently subscribed into bonds of the Convertible Bond II issue. As the conversion inclues a significant conversion option, the exchange is treated as an extinguishment of debt and an amount of $1,071,317 has been reclassified in the comprehensive statements of loss from revaluation of conversion feature to extinguishment of debt.

As per date of this report the Company has realized a cumulative amount of CHF 32.7 million ($32.9 million) related to the Convertible Bond II.

The Company initiated a new offering of senior unsecured CHF bonds on September 21, 2016, of up to CHF 20,000,000 in units of CHF 5,000 that bear interest at 6.50% per annum payable each August 15, over a four-year term that matures on August 15, 2020, with the following conditions:

Description		CHF Bond III

Issuer:		SunVesta Holding AG
Type of securities:		Senior bonds
Approval by SunVesta AG BOD:		July 7, 2016
Volume:		Up to CHF 20,000,000
Denomination:		CHF 5,000
Offering period:		November 30, 2016
Maturity date:		August 15, 2020
Issue price:		100 %
Redemption price:		100 %
Issuance date:		September 21, 2016
Coupon:		6.50 % p.a.
Interest due dates:		August 15 of each year, the first time August 15, 2017
Applicable law:		Swiss

CHF BOND III original	CHF Bond III 2017 $	CHF Bond III 2016 $

Balances January 1	15,601,389	-
Cash inflows	943,704	699,650
Cash outflows	-	-
Foreign currency adjustments	251,571	(290,665)
Reclassification from / to Bond (net)	-	15,192,404
Sub-total	16,796,665	15,601,389
Discounts (commissions paid to bondholders) and debt issuance costs	(160,270)	(56,643)
Accumulated Amortization of discounts and debt issuance costs	13,835	3,814
Reclassification from / to Bond (net)	-	(49,975)
Total Accumulated Unamortized discounts and debt issuance costs	(146,435)	(102,804)
Balances March 31 and December 31 (Carrying value)	16,650,230	15,498,586

During the year 2016 an amount of $15,192,404 (CHF 15.2 million) was subscribed into this CHF Bond III from loans from related parties. Since the new debt was not significantly different from the old debt and did not include a conversion feature deemed substantive, the exchange was not treated as an extinguishment of debt.

As per date of this report the Company has realized a cumulative amount of CHF 16.7 million ($16.8 million) related to the CHF Bond III original. Within the abovementioned facility, the Company initiated a new parallel offering of senior unsecured CHF bonds on September 21,

2016. An amount of $979,510 of which was reclassified from EUR Bond II.

Within the CHF Bond III, the Company initiated a new parallel offering of senior unsecured CHF bonds on September 21, 2016.

CHF BOND III parallel	CHF Bond III 2017	CHF Bond III 2016
	$	$

Balances January 1	961,595	-
Cash inflows	-	-
Cash outflows	-	-
Foreign currency adjustments	15,883	(17,915)
Reclassification from / to Bond (net)	-	979,510
Sub-total	977,478	961,595
Discounts (commissions paid to bondholders) and debt issuance costs	(79,289)	(79,289)
Accumulated Amortization of discounts and debt issuance costs	8,443	4,001
Reclassification from / to Bond (net)	-	-
Total Accumulated Unamortized discounts and debt issuance costs	(70,846)	(75,288)
Balances March 31 and December 31 (Carrying value)	906,632	886,307

As per date of this report the Company has realized a cumulative amount of CHF 0.9 million ($0.9 million) related to the CHF Bond III parallel.

On March 6, 2017, the Company approved the issuance of a new bond with the following conditions.

Description		CHF Bond IV

Issuer:		SunVesta Holding AG
Type of securities:		Senior bonds
Approval by SunVesta AG BOD:		March 6, 2017
Volume:		Up to CHF 50,000,000
Denomination:		CHF 1,000
Offering period:		May 1^st – November 1^st, 2017
Maturity date:		May 1, 2022
Issue price:		100 %
Redemption price:		100 %
Issuance date:		May 1, 2017
Coupon:		6.50 % p.a.
Interest due dates:		May 1^st of each year, the first time May 1^st, 2018
Applicable law:		Swiss

There were no amounts outstanding as of March 31, 2017.

SUNVESTA, INC. 10-Q