Debt management



Bekaert manages its debt  in a conservative way to guarantee the financial stability of the group over time and under different circumstances on the  financial markets.
Therefore Bekaert has 3 guiding principles to structure the debt:
  1. Net Debt/Ebitda < 2
  2. Gearing  (Net debt/equity) < 50%
  3. Financial Autonomy (Equity/Total Assets) > 40%
You can see the evolution of those 3 measurements in the graphs below.

Besides those general principles Bekaert aims at securing the liquidity through a debt structure with a relatively high portion fixed for longer term and a nicely spread repayment schedule.
Currently more than 100% of the net debt is covered by LT-debt with a remaining tenor of more than 1 year, while available cash is sufficient to repay all of the debt maturing within 1 year.

Bekaert has no financial covenants in its financing agreements other than those for the newly established Bridon-Bekaert Ropes Group (BBRG). (see below)

Bonds issued:

Financial
instrument
ISIN code Volume
(in thousand €)
Issue date Maturity
date
Issue
price
Coupon
Bond 2010-2018 BE6213295577 100 000 23/12/2010 23/12/2018 101.875% 4.500%
Bond 2011-2019 BE6228573091 195 000 06/12/2011 06/12/2019 101.900% 5.000%
Bond 2013-2020 BE0002206721 45 614 17/10/2013 17/10/2020 100.000% 4.750%
Convertible bond 2014-2018  BE6228573091   300 000 10/06/2014 18/06/2018 100.000%  

 

Net debt calculation

in thousands of €  2012 2013 2014  2015   2016
Non-current interest-bearing debt   850 050  688 244 910 074 792 116 1 161 310 
Value adjustments   -2 903  -6 245 7 584 -
Current interest-bearing debt   342 549  321 907 441 552 494 714 297 915 
Total financial debt   1 189 696  1 003 906 1 359 210 1 286 830 1 459 225 
Non-current financial receivables and cash guarantees   -21 505  -21 421  -19 551 -9 694 -6 664 
Current loans  -10 890  -6 440  -13 998 -33 185 -13 991 
Short-term deposits  -104 792  -10 172  -14 160  -10 216 -5 342 
Cash and equivalents   -352 312  -391 857  -458 542  -401 771 -365 546 
Net debt   700 197  574 016  852 959 831 964  1 067 683 

 

Net debt on EBITDA

Net debt on EBITDA

     Net debt         Ebitda Net debt/Ebitda 
2010             522              725  0.7
2011  856  497  1.7
2012  700  274  2.6
2013  574  297  1.9
2014   853  342  2.5
2015  837  441  1.9
2016  1 068 481   2.2  /1.6* 

* 1.6: net debt/Ebitda excl. BBRG effect.    
    

Gearing (net debt to equity) in %

gearing

BBRG effect

BBRG is financed by a banking syndicate of 11 lenders. The loan structure consists of senior debt (A and B tranche), a pre-merger existing debt in Belgium and Australia (BNP debt) and a revolving credit facility (RCF) in addition to some debt with existing facilities (Other debt). The financing arrangement was put in place on June 29, 2016. For financing purposes, BBRG is ring-fenced, which implies (i) it cannot get any support (such as intercompany loans, corporate guarantees, asset-pledges, any form of collateral) from other Bekaert entities outside its consolidation perimeter to finance its activities, (ii) its banking syndicate will not have any recourse to the Bekaert Group. Consequently, BBRG acts as an independent group for financing purposes. BBRG has entered into a separate factoring agreement with BNP Paribas Fortis in the UK and Germany and has the possibility to borrow up to € 13 million (2015: nil), of which € 6 million withdrawals were taken up before year-end (2015: none).

We use cookies in order to let you fully experience this website. Cookies are small files we put in your browser to mainly track usage or remember your settings of our site but they don’t tell us who you are. Want to know more about how we use these Cookies please read our Cookie policy.
Close