6. Interest Expense
| Group | 2014 €’000 |
2013 €’000 |
|---|---|---|
| Interest on senior debt securities in issue | 79,395 | 126,016 |
| Interest on derivatives where hedge accounting is applied | 228,503 | 231,590 |
| Interest on other derivative financial instruments | 5,276 | 16,905 |
| Total interest expense | 313,174 | 374,511 |
On 28 March 2013, NAML issued bonds to the value of €12.9bn as consideration for the acquisition by NARL (in Voluntary Liquidation) of a loan facility deed and floating charge over the assets of IBRC from Central Bank of Ireland. These bonds were fully redeemed by 23 October 2014. The interest expense incurred by NAML on these bonds in the year was €15.8m (2013: €33.7m). The reduction on the prior year interest expense is as a result of bond redemptions.
| Agency | 2014 €’000 |
2013 €’000 |
|---|---|---|
| Interest on intergroup loans | 186 | 836 |