Debt

Debt Structure

Debt Structure
Evolving new financial strategy: move from Project Financing fund raising to corporate/DCM financing

Group Debt Structure @30.06.2019

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

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
 
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