We are pursuing clear targets with our financial policies: the establishment of an adequate liquidity position, a strong capital structure and unrestricted access to capital and credit markets. The finances of the Wienerberger Group are regulated centrally by the holding company using a balanced combination of financial instruments.
Wienerberger’s financial policies
The basis of Wienerberger’s finances is its strong internal financing power, resulting from the sustainable generation of free cash flow and a healthy equity base. Over the past years, we have improved our mid and long-term financial structures, reduced costs and broadened our scope to act financially.
“Wienerberger’s financial policies are focused on clear targets. We want to ensure sufficient liquidity, develop a strong capital structure and maintain unrestricted access to capital and credit markets.”
By determining the duration of our financial liabilities, we are establishing a balanced maturity profile, avoiding the need to refinance.
We are committed to adhering to strict, financial criteria and are thereby striving towards a debt repayment period (net debt/ EBITDA) of less than 2.0 years by the end of the year. If the upside potential convinces us to undertake a project, this threshold may be temporarily increased to 2.5 years.
Key financial indicators
We are very satisfied with the progress of our key financial indicators, which are important for contracts with banks and credit ratings. This is highlighted by the current debt repayment period (net debt/EBITDA) and the interest coverage ratio (EBITDA/net interest expenses):
|Key financial indicators||31/12/2016||31/12/2017||Threshold|
Wienerberger’s credit rating
Wienerberger AG is advised by the international credit rating agency Moody’s.
|Corporate hybrid bonds||Ba3/stable|
Wienerberger’s short-term, interest-bearing financial liabilities include a commercial paper programme, as well as various credit lines. With the fixed-interest commercial paper programme that was concluded in 2005, we have a flexible and short-term means of covering the financial needs of the business up to 200 million Euros. The duration of these has been agreed with the investors and ranges from one week to a year.
In 2018, we concluded a revolving line of credit of 400 million Euros with ten banks. It is available for general corporate purposes and can be drawn on at least until November 2023 with the option to extend it for another two years.
The corporate bonds make up the majority of the long-term, interest-bearing financial liabilities. All of Wienerberger’s bonds may be traded on the Vienna Stock Exchange. You can find information about current rates here: The Vienna Stock Exchange.
In December 2016, a loan agreement of over 150 million Euros, which lasted for eight years, was concluded. The help of five long-standing partner banks and refinancing by the Österreichischen Kontrollbank (Austrian Kontrollbank) enabled this to be achieved financially.
The hybrid bond is designed as deeply subordinated capital with fixed interest. The bond has a perpetual maturity and Wienerberger has the unilateral right to call the hybrid bond. It is classified as an equity instrument according to IFRS.
- Issuer: Perpetual deeply subordinated hybrid bond issued by Wienerberger AG
- Principal amount: € 272,188,000.-
- Coupon: 5.00% fixed coupon per annum, payable annually in arrears until 2021; thereafter the coupon is determined every five years based on the then prevailing 5-year Swap Rate and a margin of 5.95%
- Denomination: € 1,000.-
- The premium that would be required to the prevailing market “ask” price, considering the size of the tender sought and the liquidity of the instrument subject to tender;
- Dealer manager costs;
- New debt issuance fees and related legal expenses;
- The likely interest costs associated with any new debt; and
- Any tax implications that may arise
|Wienerberger bond 2013||AT0000A100E2||4.00%||300 million Euros||7 years||17/04/2020|
|Wienerberger corporate hybrid bond 2014||DE000A1ZN206||5.00%||272 million Euros||perpetual||-|
|Wienerberger bond 2018||AT0000A20F93||2.00%||250 million Euros||6 years||02/05/2024|