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.
The financial strategy is one of the pillars of our 2020-2026 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 (currently just under 1%) 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.
Last updated: 25 November 2021
|Last updated: 6 December 2021|
Short term: not allocated
|Short term: not allocated|
Key debt ratios
Italgas already has an optimal financial structure, as proven by the ratio of Net Debt to RAB around 61.5%, a ratio of FFO to Net Debt slightly higher than 15%, a cost of debt of around 1%, and a weight of fixed-rate debt around 98%, 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 2021-27 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
Italgas Debt Structure
Short/Medium-Long Term Debt
Debt profile by maturity (as at 31 December 2021)
|BEI TE 2031||8.2||8.2||8.2||8.2||8.2||8.2||8.2||8.2||8.2||4.1||–||–||–|
|Bond 112.3 mln 0.5% Gen 2022||112.3||–||–||–||–||–||–||–||–||–||–||–||–|
|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||–|