Interest-bearing debt

Classification (x 1 million)

As at 31 December 2021

As at 31 December 2020

Current

545

290

Non-current

2,736

2,893

Total

3,281

3,183

Movements in interest-bearing debt:

x 1 million

2021

2020

As at 1 January

3,183

3,004

New non-current interest-bearing debt

497

-

New current interest-bearing debt

2,600

1,375

Repayments of non-current interest-bearing debt

-195

-

Repayments of current interest-bearing debt

-2,800

-1,175

Lease liabilities

-8

-5

Foreign currency exchange differences

6

-29

Interest rate swaps

-7

13

Other movements

5

-

As at 31 December

3,281

3,183

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

545

290

1 to 2 years

11

535

2 to 3 years

49

11

3 to 4 years

536

121

4 to 5 years

504

534

After 5 years

1,636

1,692

Total

3,281

3,183

Most interest-bearing debts as at 31 December 2021 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 information on right-of-use assets, see 16 Right-of-use assets.

The total lease liability as at 31 December 2021 was €74 million (2020: €81 million). The maturities of this lease liability are: €13 million within one year, €31 million from one to five years and €30 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 2021:

  • Equity was strengthened by issuing €200 million in preference shares to some of the existing shareholders.
  • In May 2021, Stedin redeemed USD and GBP bond loans; in total, €196 million in principal was redeemed, part of which was redeemed early at a premium of €38 million. As a result of this early redemption, the financing expenses for these loans were brought forward, which gave rise to an one-off interest expense in 2021. This is offset by lower interest expenses for future years. Both loans are refinanced via active Stedin Group financing programmes.
  • The €500 million hybrid financing dating from 2014 was redeemed with a tender offer to investors and replaced with a new €500 million hybrid issue with a call date in 2027 and a coupon of 1.5%
  • A new five-year green bond loan of €500 million with an interest coupon of 0.0% was issued under the Euro Medium Term Note programme and Green Finance Framework, which were updated.

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 2021.

Gearing ratio

2021

2020

Principal amounts payable of interest-bearing debt

3,281

3,183

Cash and cash equivalents

-133

-83

Net debt

3,148

3,100

Principal amounts payable of interest-bearing debt

3,281

3,183

Equity

3,270

2,891

Equity adjustments

-92

-93

Total equity

6,459

5,981

Gearing ratio

48.7%

51.8%

Interest coverage ratio

2021

2020

Profit before income tax

32

72

Depreciation and amortisation

360

334

Financial income and expenses

93

56

Profit after income tax of group entities sold

-1

1

EBITDA

484

463

Net interest payable

88

60

Interest coverage ratio

5.5

7.7