This section illustrates the Group’s solid financial profile, with information on debt structure and financing policy.
Bureau Veritas has access to well-diversified sources of financing including bond issues, US Private Placements and bank loans with a balanced maturity profile.
The Group has the policy to finance its assets in the concerned currencies allowing a natural hedge of currency risk. Currency swaps are used to hedge subsidiaries’ cash surpluses and requirements in other currencies.
The Group monitors interest rate exposure so that less than 60% of its consolidated net debt can be exposed to a rise in interest rates. The Group may enter into hedging instruments for this purpose. No financial instruments are contracted for speculative purposes.
On May 17, 2018, Bureau Veritas SA signed a EUR 600 million multicurrency Revolving Credit Facility. This syndicated credit facility has a five-year maturity, with 2 one-year extension options, exercised in 2019 and 2020.
The Revolving Credit Facility and US Private Placement (USPP) require compliance with certain bank covenants and ratios. At June 30, 2022, the adjusted net financial debt/EBITDA ratio was further reduced to 1.10x (from 1.30x last year) and the EBITDA/consolidated net financial expense ratio was 16.67x. At June 30, 2022, the ratio of adjusted net financial debt to EBITDA had to be less than 3.5x and, only for the US Private Placement, the ratio of EBITDA to consolidated net financial expense had to be greater than 5.5x.
At June 30, 2022, the blended average cost of funds over the year was 2.5% excluding the impact of IFRS 16 (compared with 2.4% at June 30, 2021 excluding the impact of IFRS 16). Debt was primarily denominated in Euro (68%) and US dollars (29%).
On September 30, 2022, Bureau Veritas successfully raised EUR 200 million on the US Private Placement market through a bilateral 10-year issuance. At the end of the third quarter of 2022, the Group had a solid financial structure with the bulk of its maturities beyond 2024, 100% of fixed debt and an average maturity of 4.2 years post transaction.
At September 30, 2022, bond issues break down as follows:
|In euros millions||Maturity||Coupon (%)||Nominal amount||Currency|
|2016 Bond||Sep. 2023||1.250%||500 million||EUR|
|2016 Bond||Sep. 2026||2.000%||200 million||EUR|
|2018 Bond||Jan. 2025||1.875%||500 million||EUR|
|2019 Bond||Jan. 2027||1.125%||500 million||EUR|
US private Placements
At September 30, 2022, US Private Placement break down as follows:
|In currency millions||Maturity||Coupon (%)||Nominal amount||Currency|
|2017 USPP||Sep. 2027
|2018 USPP||Jan. 2029||Fixed||200 million||USD|
|2019 USPP||Jan. 2030||Fixed||200 million||USD|
|2022 USPP||Sep. 2032||Fixed||200 million||EUR|
At September 30, 2022, bank facilities down as follows:
|In currency millions||Maturity||Drawn amount||Available amount||Currency|
|2018 Syndicated Credit Facility||May 2025||-||600 million||EUR|
Financial operation Press Releases
|24 Feb 2021||Bureau Veritas links its syndicated credit facility financial terms to Environmental, Social and Governance (ESG) indicators|
|12 Nov. 2019||Bureau Veritas successfully completes a bond issuance:
EUR 500 million non-rated maturity January 2027
|28 Sep. 2018||Bureau Veritas successfully issued
a EUR 500 million non-rated new bond issue maturity January 2025
|4 Sep 2017||Bureau Veritas successfully raises
USD 355 million 10-year USPP
|31 Aug. 2016||Bureau Veritas successfully raises
EUR 700 million through a 7-year and 10-year non-rated new bond issue
|16 Jan. 2014||Bureau Veritas successfully launches a second bond issue|
|14 Nov. 2019|
|2 Oct. 2018|