Financial management stable
Australian debt issuance
In addition to aiming for a sustained rise in enterprise value, DB Group’s financial management focuses on maintaining a capital structure that will ensure excellent credit ratings. Please see value management for detailed information on the key figures used: redemption coverage, gearing and net financial debt/EBITDA.
- DB Group has access to a European debt issuance program (EDIP) for long-term debt financing. Under the EDIP, two Euro bonds were issued by DB Finance with durations of 10 and 15.5 years and a volume of €1,000 million and €750 million. In return, two bonds of €1,600 million and €300 million were redeemed. As a result, the absolute utilization of the EDIP as of June 30, 2018 decreased slightly by €0.1 billion compared with the end of 2017. The degree of utilization as of June 30, 2018 is 77% (as of December 31, 2017: 77%).
- We also have an Australian Debt Issuance Program (Kangaroo Program). Under this program, a bond was issued and an existing bond was increased (durations: 14.5 and 10 years; total volume €228 million (AUD 150 million and AUD 206 million)).
- In the area of short-term debt financing, a multi-currency multi-issuer commercial paper program with a volume of €2 billion remains available.
- As of June 30, 2018 we also had guaranteed unutilized credit facilities with a remaining term of between 1.0 and 2.0 years, and another guaranteed unutilized credit facility of €0.1 billion (as of December 31, 2017: €0.1 billion).
- In addition, we were able to rely on credit lines of €2.2 billion for the operating business (as of December 31, 2017: €2.2 billion). These credit lines, which are made available to our subsidiaries around the world, include provisions for financing working capital as well as sureties for payment.
No major finance leases or sale and leaseback agreements were concluded during the first half of 2018.
Four bonds issued
1) Private placement.
Via the Group financing company DB Finance, we issued four bonds with a value of just under €2.0 billion during the first half of 2018. At the beginning of July we issued another CHF bond. The funds were raised to refinance due liabilities. The proceeds of bonds not issued in euros were swapped into euros.
Demand for the two public issues under the European Debt Issuance program mainly originated from institutional investors in Europe and Asia.
In addition, we issued two more bonds under the newly established Australian Debt Issuance Program. The two private placements were placed with institutional investors in Asia (mainly in Japan).