22.Financing and Financial Liabilities
The €5.0 billion Debt Issuance Program launched in the first quarter of 2016 is a key form of external financing. In fiscal 2016, Covestro placed euro bonds totaling €1.5 billion, of which one fixed-rate tranche with a term until September 2024 (a coupon of 1.75% and a volume of €500 million) remains in the portfolio. One tranche with a term until October 2021 (a coupon of 1.00% and a volume of €500 million) was repaid ahead of schedule in full at par value on July 7, 2021. An additional €1.0 billion in euro bonds was placed in 2020. The fixed-rate bonds have terms expiring in February 2026 (a coupon of 0.875% and a volume of €500 million) and June 2030 (a coupon of 1.375% and a volume of €500 million).
Moreover, Covestro AG arranged a credit facility for a total of €50 million in December 2021.
As of December 31, 2021, the Group had total credit facilities of €2,817 million (previous year: €3,969 million) at its disposal. Of this amount, €2.5 billion is attributable to the five-year syndicated revolving credit facility arranged in March 2020. It includes two options to extend the term by one year in each case. One option to extend was exercised in March 2021 to extend the term of the syndicated revolving credit facility to March 2026. An important feature of the credit line is its link to an ESG (environment, social, and governance) rating: The better (worse) the externally calculated ESG score is, the lower (higher) the interest component of the credit facility.
A total of €275 million (previous year: €227 million) of the existing credit facilities was drawn down, while €2,542 million (previous year: €3,742 million) remained unused.
Financial liabilities were comprised as follows:
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|
|
|
|
|
|
|
|
|
|
Dec. 31, 2020 |
|
Dec. 31, 2021 |
||||
|---|---|---|---|---|---|---|---|---|
|
|
Total |
|
Of which current |
|
Total |
|
Of which current |
|
|
€ million |
|
€ million |
|
€ million |
|
€ million |
Bonds |
|
1,990 |
|
500 |
|
1,492 |
|
– |
Liabilities to banks |
|
227 |
|
2 |
|
275 |
|
50 |
Lease liabilities |
|
672 |
|
111 |
|
761 |
|
130 |
Liabilities from derivatives |
|
9 |
|
9 |
|
11 |
|
11 |
Other financial liabilities |
|
1 |
|
– |
|
2 |
|
1 |
Total |
|
2,899 |
|
622 |
|
2,541 |
|
192 |
|
|
|
|
|
|
|
|
|
|
|
Dec. 31, 2020 |
|
|
|
|
|
Dec. 31, 2021 |
|---|---|---|---|---|---|---|---|---|
Maturity |
|
€ million |
|
|
|
Maturity |
|
€ million |
2021 |
|
622 |
|
|
|
2022 |
|
192 |
2022 |
|
115 |
|
|
|
2023 |
|
135 |
2023 |
|
90 |
|
|
|
2024 |
|
580 |
2024 |
|
554 |
|
|
|
2025 |
|
293 |
2025 |
|
268 |
|
|
|
2026 |
|
556 |
2026 or later |
|
1,250 |
|
|
|
2027 or later |
|
785 |
Total |
|
2,899 |
|
|
|
Total |
|
2,541 |
The financial liabilities of the Covestro Group are mainly unsecured.
Lease Liabilities
Lease payments of €893 million (previous year: €782 million) are to be made to the respective lessors in future years; of this amount, the interest component amounts to €132 million (previous year: €110 million). The lease liabilities mature as follows:
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|
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|
|
|
|
|
|
|
|
|
|
Dec. 31, 2020 |
|
|
|
|
|
Dec. 31, 2021 |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
Lease payments |
|
Interest component |
|
Lease liabilities |
|
|
|
|
|
Lease payments |
|
Interest component |
|
Lease liabilities |
Maturity |
|
€ million |
|
€ million |
|
€ million |
|
|
|
Maturity |
|
€ million |
|
€ million |
|
€ million |
2021 |
|
131 |
|
20 |
|
111 |
|
|
|
2022 |
|
150 |
|
20 |
|
130 |
2022 |
|
132 |
|
17 |
|
115 |
|
|
|
2023 |
|
154 |
|
19 |
|
135 |
2023 |
|
104 |
|
14 |
|
90 |
|
|
|
2024 |
|
96 |
|
15 |
|
81 |
2024 |
|
67 |
|
11 |
|
56 |
|
|
|
2025 |
|
81 |
|
13 |
|
68 |
2025 |
|
51 |
|
8 |
|
43 |
|
|
|
2026 |
|
69 |
|
10 |
|
59 |
2026 or later |
|
297 |
|
40 |
|
257 |
|
|
|
2027 or later |
|
343 |
|
55 |
|
288 |
Total |
|
782 |
|
110 |
|
672 |
|
|
|
Total |
|
893 |
|
132 |
|
761 |