Interest-bearing debt

Movements in interest-bearing debt:

The maturities of the interest-bearing debts are presented below:

Most interest-bearing debts as at 31 December 2019 were contracted by Stedin Holding N.V. and no collateral has been provided. More information on interest-bearing debt is included in 33 Financial risk management.

The lease liabilities that are capitalised as of 1 January 2019 as a result of the application of IFRS 16 are included in interest-bearing debt. For further details, see note 2.4 Effects of the adoption of new IFRS Standards. For information on the right-of-use assets, see 16 Right-of-use assets

The total lease liability as at 31 December 2019 was € 86. The maturities of this lease liability are: € 14 within 1 year, € 41 from 1 to 5 years and € 31 after 5 years.

There is no liquidity risk for the lease liabilities arising from right-of-use assets. The lease liabilities are monitored by the Corporate Control department.

The following significant financing transactions took place in 2019:

• Stedin Group successfully issued its first green bond. The € 500 million raised are linked to investments made by Stedin Group in sustainable projects. The loan of € 500 million has a term of 10 years, an issue price of 98.658% and a coupon interest of 0.5% (effective interest rate of 0.639%).
• The Euro Medium Term Note programme was extended in 2018 and the amount was increased from € 2 billion to € 3 billion.
• Several loans were repaid during 2019, for an aggregate amount of € 1.4 billion.

Some of the loans are subject to financial covenants, which are set out below:

• a gearing ratio (Total net borrowings / Total capitalisation) lower than 70%;
• an interest coverage ratio (EBITDA / net interest expense) higher than 3.

The above ranges for ratios are assessed at the end of each measurement period.

The following definitions apply,

• Measurement period: 12-month moving average per 31 December and 30 June of each financial year.
• Total net borrowings: Sum of current and non-current interest-bearing debt, minus cash and cash equivalents.
• Total capitalisation: Sum of current and non-current interest-bearing debt and total group equity adjusted for goodwill, intangible assets and minority interests.
• EBITDA: Profit before income tax, adjusted for depreciation, amortisation and impairment of non-current assets, financial income and expenses, profit after income tax from discontinued operations, revaluations, one-off items and share of profit of minority interests.
• Net interest expense: Sum of financial income and expenses.

Stedin Group implemented IFRS 16 with effect from 1 January 2019. Its impact included an increase in interest-bearing debt, an increase in total equity and an increase in EBITDA. Due to the relatively small impact of the adoption of IFRS 16 on interest-bearing debt and EBITDA, the effect on the ratios is minimal.

The tables below show that Stedin Holding N.V. complied with the conditions stated above during 2019.