Givaudan’s financial position remained solid at the end of the year. Net debt at December 2020 was CHF 4,040 million and the leverage ratio was 50%.
Balanced debt profile
In 2018 we received our first credit ratings, and the strong investment confirms the Company’s market leadership position and strong financial profile:
- S&P global ratings: A- credit rating, with a stable outlook
- Moody’s investors Service: Baa1 rating, with stable outlook
Credit rating as per June 2020:
|SA&P short-term rating||A-2|
|S&P long-term rating||A-|
Our current outstanding bonds issue is provided in the following table.
|Issuer||Issue date||Type of debt||Currency of
|Redeemable||Interest rate||Type of
|in millions of Swiss francs|
|Givaudan SA||2011||Public bonds||CHF||150||07-12-2021||2.125%||fixed||150||149|
|Givaudan United States, Inc.||2012||Private
|Givaudan SA||2014||Public bonds||CHF||100||18-09-2020||1.000%||Reimbursed||100|
|Givaudan Finance Europe BV||2020||Public bonds||EUR||500||22-04-2027||1.000%||fixed||537|
|Total short-term and long-term debt as at 31 December b||4,037||3,690|
a) There are various covenants contained in these transactions covering conditions on net worth, indebtedness and EBITDA ratio to net interest expense of Givaudan United States, Inc. The Company is and has been in full compliance with the covenants set.
b) The fair value of the short-term and long-term debt exceeds its carrying value by approximately 9% as at 31 December 2020.
c) The floating interest rate is based on a Libor rate.