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:
- Net Debt/Ebitda < 2
- Gearing (Net debt/equity) < 50%
- 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 |
- |
0 |
| 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 |
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 %
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).