Debt
Debt Structure
Evolving new financial strategy: move from Project Financing fund raising to corporate/DCM financing
Group Debt Structure @30.06.2019
- Debt structure mainly composed of medium term loans with 92% fixed rate portion
- ERG's operating assets grant a steady flow of cash upstream to ERG S.p.A:
- Hydro & natural gas assets fully unlevered without any external financing constraints
- Wind & Solar SPVs financed by long term loans with maturities consistent with incentive life and able to upstream a relevant amount of cash
(1) ERG S.p.A. owns all the operating assets through ERG Power Generation S.p.A. an 100% owned operating subsidiary, free of debt and in cash pooling with ERG S.p.A
Financial Policy
Conservative financial policy focused on:
- consolidated Net debt / EBITDA to be less than 3.0x
- limited maintenance capex offering the flexibility to deleverage quickly when necessary (e.g. 2017)
- maintaining a solid liquidity profile
Prudent financial policy coupled with sizeable bulk of liquidity
(1) Liquidity is equal to the following components of the Net Financial Position: (i) short-term banking liabilities (ii) cash and cash equivalent
Key Credit Ratios
| 2017 | 2018 | |
|---|---|---|
| Net Debt/EBITDA | 2.6 | 2.7 |
| FFO Adjusted Net Leverage | 2.8 | 3.0 |
| Debt to Equity Ratio | 40% | 42% |
FFO Adjusted Net Leverage means the ratio of:
(a) Adjusted Net Debt
(b) Adjusted Funds from Operation;
Adjusted Net Debt is calculated as follows
Net Debt reported + Operating Leases Capitalized – Interest Rate Swap Fair Value – IFRS 16 Adjustment
Adjusted Funds from Operation is calculated as follows
EBITDA reported + Operating expenses for Capitalized Leased Assets – Taxes paid – dividend vs minorities
Outstanding Bonds
Green Bond 2019
Private placement 2017
| ISIN | Issue Amount | Coupon | Issue Date | Maturity Date | Issue Price | Yeld to Maturity | Rating |
|---|---|---|---|---|---|---|---|
| XS1981060624 | 500,000,000 € | 1.875% | 11 April 2019 | 11 April 2025 | 99.674% | 1.933% | Fitch: BBB- |
Private placement 2017
| ISIN | Issue Amount | Coupon | Issue Date | Maturity Date | Issue Price | Yeld to Maturity | Rating |
|---|---|---|---|---|---|---|---|
| XS1647857264 | 100,000,000 € | 2.175% | 19 July 2017 | 19 January 2023 | 100% | 2.175% | Unrated |
Page updated at 30 Sep 2019