25. Interest-bearing debt
Classification (x € 1 million) | As at 31 December 2023 | As at 31 December 2022 |
|---|---|---|
Current | 265 | 280 |
Non-current | 3,069 | 3,116 |
Total | 3,334 | 3,396 |
Changes in interest-bearing debt:
x € 1 million | 2023 | 2022 | ||
|---|---|---|---|---|
short term | long term | short term | long term | |
As at 1 January | 280 | 3,116 | 531 | 2,675 |
New non-current interest-bearing debt | - | - | - | 495 |
New current interest-bearing debt | 5,723 | - | 1,050 | - |
Repayments of non-current interest-bearing debt | - | - | -533 | - |
Repayments of current interest-bearing debt | -5,778 | - | -770 | - |
Foreign currency exchange differences | - | -13 | - | -11 |
Interest rate swaps | - | 3 | - | -45 |
Discontinued operations | 40 | -40 | - | - |
Other movements | - | 3 | 2 | 2 |
As at 31 December | 265 | 3,069 | 280 | 3,116 |
The significant drawdowns and repayments of short-term interest-bearing debt in 2023 relate to cash loans. In anticipation of the € 500 million capital contribution by the Dutch State, these loans were raised with very short maturities in each case to finance the negative cash flow during the year.
The maturities of the interest-bearing debts are presented below:
x € 1 million | As at 31 December 2023 | As at 31 December 2022 |
|---|---|---|
Within 1 year | 265 | 280 |
1 to 2 years | 529 | 40 |
2 to 3 years | 498 | 529 |
3 to 4 years | 300 | 498 |
4 to 5 years | 504 | 300 |
After 5 years | 1,238 | 1,749 |
Total | 3,334 | 3,396 |
The interest-bearing debts as at 31 December 2023 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 € 500 million capital contribution received from the State met a large part of the financing requirement for 2023. In addition, Stedin arranged a renewed revolving credit facility of € 800 million with six banks in 2023 (see 32.3 Liquidity risk for more information). The revolving credit facility was not used in 2023 and 2022.
Some of the loans are subject to financial covenants, which are set out below:
a gearing ratio (net debt / 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, including lease liabilities, minus cash and cash equivalents.
Total capitalisation: sum of current and non-current interest-bearing debt, including lease liabilities, plus total group equity adjusted for capital components related to goodwill, intangible assets and minority interests.
EBITDA: Result before income tax, adjusted for depreciation, amortisation, net interest payable, gains on disposals, results of group entities sold and result from associates and joint ventures.
Net interest expense: sum of interest income and expenses relating to loans adjusted for capitalised interest.
The tables below show that Stedin Holding N.V. complied with the conditions stated above during 2023.
Gearing ratio | 2023 | 2022* |
|---|---|---|
Principal amounts payable of interest-bearing debt | 3,334 | 3,396 |
Lease liabilities | 69 | 71 |
Cash and cash equivalents | -188 | -53 |
Net debt | 3,215 | 3,414 |
Principal amounts payable of interest-bearing debt | 3,334 | 3,396 |
Lease liabilities | 69 | 71 |
Equity | 3,221 | 2,589 |
Equity adjustments | -107 | -100 |
Total equity | 6,517 | 5,956 |
Gearing ratio | 49.3% | 57.3% |
- * The comparative figures have been adjusted as a result of a change in accounting policy for the valuation of property, plant and equipment. See 2.2.10 Property, plant and equipment for more information.
Interest coverage ratio | 2023 | 2022* |
|---|---|---|
Profit before income tax | 228 | 109 |
Depreciation and amortisation | 299 | 289 |
Net interest payable | -72 | -43 |
Profit after income tax of group entities sold | - | -3 |
EBITDA | 455 | 352 |
Net interest payable | 72 | 43 |
Interest coverage ratio | 6.3 | 8.2 |
- * The comparative figures have been adjusted as a result of a change in accounting policy for the valuation of tangible fixed assets. See 2.2.10 Property, plant and equipment for more information.
