Financing
According to the publication dated May 8, 2019, Vonovia’s credit rating as awarded by the agency Standard & Poor’s is an unchanged ‘BBB+’ with a stable outlook for the long-term corporate credit rating and ‘A-2’ for the short-term corporate credit rating. At the same time, the credit rating for the issued and unsecured bonds is ‘BBB+.’
A European medium-term notes program (EMTN program) has been launched for the Group via Vonovia Finance B.V., allowing funds to be raised quickly at any time using bond issues and without any major administrative outlay. The prospectus for the EMTN program has to be updated annually and approved by the financial supervisory authority of the Grand Duchy of Luxembourg (CSSF).
As of the reporting date of June 30, 2019, Vonovia Finance B.V. had placed a total bond volume of € 13.1 billion, € 12.4 billion of which relates to the EMTN program. With effect from January 29, 2019 and as part of its EMTN program, Vonovia placed a bond with a nominal volume of € 500 million and a coupon of 1.800% maturing on June 29, 2025. The first interest payment date is June 29, 2019.
Victoria Park informed all bondholders on June 17, 2019 and repaid the corporate bond (Bond Sweden) in the amount of € 58.5 million in due form effective June 10, 2019.
On April 8, 2019, Vonovia repaid the subordinated debenture (hybrid) of € 700 million issued by Vonovia Finance B.V. in full.
The debt maturity profile of Vonovia’s financing was as follows as of June 30, 2019:
Maturity Profile
In connection with the issue of unsecured bonds by Vonovia Finance B.V., Vonovia has undertaken to comply with the following standard market covenants:
- Limitations on incurrence of financial indebtedness
- Maintenance of consolidated coverage ratio
- Maintenance of total unencumbered assets
The existing structured and secured financing arrangements also require adherence to certain standard market covenants. Any failure to meet the agreed financial covenants could have a negative effect on the liquidity status.
The LTV (loan to value) is as follows as of the reporting date:
in € million |
Dec. 31, 2018 |
June 30, 2019 |
Change in % |
||
|---|---|---|---|---|---|
|
|||||
|
|
|
|
||
Non-derivative financial liabilities |
20,136.0 |
20,526.4 |
1.9 |
||
Foreign exchange rate effects |
-33.5 |
-34.9 |
4.2 |
||
Cash and cash equivalents |
-547.7 |
-1,280.6 |
>100 |
||
Net debt |
19,554.8 |
19,210.9 |
-1.8 |
||
Receivables/Prepayments from sales |
-256.7 |
15.0 |
-105.8 |
||
Adjusted net debt |
19,298.1 |
19,225.9 |
-0.4 |
||
|
|
|
|
||
Fair value of the real estate portfolio |
44,239.9 |
47,449.0 |
7.3 |
||
Shares in other real estate companies |
800.3 |
127.4 |
-84.1 |
||
Adjusted fair value of the real estate portfolio |
45,040.2 |
47,576.4 |
5.6 |
||
|
|
|
|
||
LTV |
42.8% |
40.4% |
-2.4 pp |
||
The financial covenants have been fulfilled as of the reporting date.
in € million |
Dec. 31, 2018 |
June 30, 2019 |
Change in % |
|---|---|---|---|
|
|
|
|
Non-derivative financial liabilities |
20,136.0 |
20,526.4 |
1.9 |
Total assets |
49,387.6 |
50,883.0 |
3.0 |
|
|
|
|
LTV bond covenants |
40.8% |
40.3% |
-0.5 pp |
|
|
|
|