Tekes means the National Technology Agency of Finland (TEKES), Valtiokonttori and each successor and assignee of either of them in connection with Indebtedness owed by Borrower to either entity or in connection with Contingent Obligations of Borrower with respect to Indebtedness owed to either entity.
As on December 31, 2015, non-convertible capital loans granted by Tekes comprised a total of 14 non-convertible capital loans, comprising an aggregate amount of EUR 16,318 thousand following the forgiveness of two loans (carrying value EUR 1,088 thousand) in 2013.
The Company's loans from Tekes are mainly tied to the base rate defined by the Finnish Ministry of Finance, which is reset rarely, with a floor at 3% for the non-convertible capital loans and 1% for the research and development loans.
As on December 31, 2015, the Company had EUR 2,690 thousand of R&D loans granted by Tekes.
The Company's interest rate risk arises from borrowings from Tekes and private investors.
Interest expenses Interest expenses consist of non-cash interest expenses accrued on the Tekes loans and the convertible capital loans, which remained broadly stable.