Company: CMDB
Filing Date: 2025-03-31
Form Type: 20FR12B
Source: 0001140361-25-011425
Chunk: 266

Company: Costamare Bulkers Holdings Ltd
Filing Date: 2025-03-31
Form: 20FR12B
Chunk 266
---
 fair value changes have occurred. (a) Interest rate caps that meet the criteria for hedge accounting: These interest rate caps are designed to hedge the variability of interest cash flows arising from floating rate debt, attributable to movements in three-month or six-month SOFR. According to our Risk Management Accounting Policy, after putting in place the formal documentation required by ASC 815 in order to designate these interest rate caps as hedging instruments as from their inception, these interest rate derivative instruments qualified for hedge accounting. Accordingly, only hedge ineffectiveness amounts arising from the differences in the change in fair value of the hedging instrument and the hedged item are recognized in earnings. Assessment and measurement of the

144

#### TABLE OF CONTENTS
effectiveness of these interest rate derivative instruments are performed at each reporting period. For qualifying cash flow hedges, the fair value gain or loss associated with the effective portion of the cash flow hedge will be recognized initially in “Other comprehensive income” within shareholders’ equity and recognized in the predecessor combined carve-out statement of comprehensive income in the periods when the hedged item affects profit or loss. Any ineffective portion of the gain or loss on the hedging instrument will be recognized in the predecessor combined carve-out statement of comprehensive income immediately.

As of December 31, 2023, we had interest rate cap agreements with an outstanding notional amount of $185.4 million. The fair value of these interest rate caps outstanding at December 31, 2023, amounted to an asset of $7.9 million, and are included in the related predecessor combined carve-out balance sheets. As of December 31, 2024, we did not have any interest rate cap agreements.

(b) Interest rate caps that do not meet the criteria for hedge accounting: As of December 31, 2023 and 2024, we did not hold any interest rate caps that did not qualify for hedge accounting.

(c) Foreign Currency Exchange Agreements: We generate all of our revenue in U.S. dollars, but a portion of our vessel operating expenses, primarily crew wages, are in currencies other than U.S. dollars (mainly in Euro), and any gain or loss we incur as a result of the U.S. dollar fluctuating in value against those currencies is included in vessel operating expenses. As of December 31, 2024 approximately 9% of our outstanding accounts payable were denominated in currencies other than the U.S. dollar (mainly in the Singapore dollar). We hold cash and cash equivalents mainly in U