Interest-bearing debt
Classification (x € 1 million) | As at 31 December 2020 | As at 31 December 2019 |
|---|---|---|
Current | 290 | 19 |
Non-current | 2,893 | 2,985 |
Total | 3,183 | 3,004 |
Movements in interest-bearing debt:
x € 1 million | 2020 | 2019 |
|---|---|---|
As at 1 January | 3,004 | 3,044 |
New non-current interest-bearing debt | - | 492 |
New current interest-bearing debt | 1,375 | 727 |
Repayments of non-current interest-bearing debt | - | -648 |
Repayments of current interest-bearing debt | -1,175 | -727 |
Lease liabilities | -5 | 86 |
Foreign currency exchange differences | -29 | 17 |
Interest rate swaps | 13 | 10 |
Other movements | - | 3 |
As at 31 December | 3,183 | 3,004 |
The maturities of the interest-bearing debts are presented below:
x € 1 million | As at 31 December 2019 | As at 31 December 2018 |
|---|---|---|
Within 1 year | 290 | 19 |
1 to 2 years | 535 | 94 |
2 to 3 years | 11 | 538 |
3 to 4 years | 121 | 10 |
4 to 5 years | 534 | 126 |
After 5 years | 1,692 | 2,217 |
Total | 3,183 | 3,004 |
Most interest-bearing debts as at 31 December 2020 were contracted by Stedin Holding N.V., and no collateral has been provided. More information on interest-bearing debt is included in 32 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 information on right-of-use assets, see 15 Right-of-use assets.
The total lease liability as at 31 December 2020 was €81 million (2019: €86 million). The maturities of this lease liability are: €14 million within one year, €39 million from one to five years and €28 million after five 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 2020:
- In 2020, €200 million was raised in current debt: €100 million in private loans and €100 million under the Euro Commercial Paper Programme.
- The long-term debt portfolio was virtually unchanged in 2020; the change was attributable to a small repayment on amortising loans and exchange differences.
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, net interest payable, profit of group entities sold, revaluations, one-off items and share of minority interests.
- Net interest expense: sum of financial income and expenses.
The tables below show that Stedin Holding N.V. complied with the conditions stated above during 2020.
Gearing ratio | 2020 | 2019 |
|---|---|---|
Principal amounts payable of interest-bearing debt | 3,183 | 3,004 |
Cash and cash equivalents | -83 | -72 |
Net debt | 3,100 | 2,932 |
Principal amounts payable of interest-bearing debt | 3,183 | 3,004 |
Equity | 2,891 | 2,949 |
Equity adjustments | -93 | -95 |
Total equity | 5,981 | 5,858 |
Gearing ratio | 51.8% | 50.1% |
Interest coverage ratio | 2020 | 2019 |
|---|---|---|
Profit before income tax | 72 | 352 |
Depreciation and amortisation | 334 | 317 |
Financial income and expenses | 56 | 67 |
Profit after income tax of group entities sold | 1 | -247 |
EBITDA | 463 | 489 |
Net interest payable | 60 | 70 |
Interest coverage ratio | 7.7 | 7.0 |
