Debt and ratings
Our debt is low cost, has a high average duration, and a high proportion of fixed-rate debt. We have an investment grade rating of Baa2 from Moody’s and BBB+ from Fitch.
Financial strategy
The financial strategy is one of the pillars of our 2023-2029 Strategic Plan. The financial efficiency programme that we are committed to achieving involves continuous focus on maintaining an optimally balanced debt structure, with the aim of preserving the cost of debt at excellent levels.
We expect cash generation to remain robust during the strategic plan period, supporting both organic growth and dividend payments. We also expect that cash generation will allow us to maintain our current creditworthiness.
The debt structure is in line with:
- Regulatory profile.
- Limited exposure to interest rates.
- Financial out-performance.
- Control of refinancing risk.
- Competitive cost of debt, in line with guidance.
Credit rating
|
Moody’s |
Fitch |
|
Issuer rating |
Issuer rating |
|
Last updated: 21 November 2023 |
Last updated: 20 November 2023 |
|
Long-term: Baa2 |
Long-term: BBB+ |
|
Short term: not assigned |
Short term: not assigned |
|
Outlook: stable |
Outlook: stable |
Key debt ratios
Italgas already has an optimal financial structure, as proven by the ratio of Net Debt to RAB around 66%, a ratio of FFO to Net Debt slightly higher than 13%, a cost of debt of around 1.3%, and a weight of fixed-rate debt around 91%, which implies a limited exposure to interest rate volatility.
By keeping indicators at virtuous levels over the period covered by the Plan, Italgas expects to continue to benefit from rating metrics in the solid investment grade area. Notably, the Net Debt-to-RAB ratio is expected to remain consistently below 70% over the 2023-29 period.
Moreover, over the Plan period Italgas expects that significant operating cash flow will fully cover organic capital expenditure and a large part of dividend distribution, keeping the ratio of FFO to Net Debt well above the 10% level, which is the threshold defined by rating agencies for the classification of debt in the investment grade area.
A solid and efficient debt structure
-
BILLION EUROS EXCLUDING IFRS 16
5,9
-
RATE DEBT
91%
-
AVERAGE DEBT
1,4%
Debt profile by maturity (as at 31 December 2022)
| 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 | After
2033 |
|
| Banking lines | 17 | – | – | 12 | 2 | 11 | – | – | 37 | – | – | 166 |
| BEI 2032 | 25.0 | 25.0 | 25.0 | 25.0 | 25.0 | 25.0 | 25.0 | 25.0 | 25.0 | 25.0 | – | |
| BEI 2035 | 8.3 | 8.3 | 8.3 | 8.3 | 8.3 | 8.3 | 8.3 | 8.3 | 8.3 | 8.3 | 8.3 | 16.5 |
| BEI 2037 | 24.0 | 24.0 | 24.0 | 24.0 | 24.0 | 24.0 | 24.0 | 24.0 | 24.0 | 24.0 | 24.0 | 96.0 |
| BEI TE 2031 | 8.2 | 8.2 | 8.2 | 8.2 | 8.2 | 8.2 | 8.2 | 8.2 | 4.1 | – | – | – |
| BEI DEDA 2042 | 0.4 | 0.4 | 0.4 | 0.4 | 0.4 | 0.4 | 0.4 | 9.2 | ||||
| BEI GEOSIDE 2037 | 7.5 | 15 | 15 | 15 | 15 | 15 | 15 | 15 | 37.5 | |||
| ESG Loans | – | 500.0 | 250 | – | – | – | – | – | – | – | – | – |
| Bond 381.3 mln 1.125% Mar 2024 | – | 381.3 | – | – | – | – | – | – | – | – | – | – |
| Bond 500 mln 0.250% Giu 2025 | – | – | 500.0 | – | – | – | – | – | – | – | – | – |
| Bond 750 mln 1.625% Gen 2027 | – | – | – | – | 750.0 | – | – | – | – | – | – | – |
| Bond 500 mln 0% Feb 2028 | – | – | – | – | – | 500.0 | – | – | – | – | – | – |
| Bond 750 mln 1.625% Gen 2029 | – | – | – | – | – | – | 750.0 | – | – | – | – | – |
| Bond 600 mln 0.875% Lug 2030 | – | – | – | – | – | – | – | 600.0 | – | – | – | – |
| Bond 500 mln 1% Dic 2031 | – | – | – | – | – | – | – | – | 500.0 | – | – | – |
| Bond 500 mln 0,5% Feb 2033 | – | – | – | – | – | – | – | – | – | – | 500.0 | – |
| 82.5 | 946.8 | 815.5 | 85.0 | 832.5 | 591.5 | 830.5 | 680.5 | 613.4 | 72.3 | 547.3 | 328 |
Bond issues and bondholders
Since 2017 we have issued bonds for 5.5 billion euros.