Financial policies
DSM's financial policies cover investor relations, cash flow, dividends, silent periods and accounting.
External funding sources
Debt & credit
Debt and credit rating overview
As a basis for and contribution to effective risk management and to ensure that the company will be able to pursue its strategies even during periods of economic downturn, Koninklijke DSM N.V. retains a solid financial policy.
The company aims to maintain a strong investment grade long-term credit rating for senior unsecured debt; most external funding needs being financed through long-term debt. DSM also has a commercial paper program and a committed credit facility maturing in May 2024.
Debt
DSM aims to spread the maturity profile of outstanding bonds in order to have adequate financial flexibility. The weighted average interest rate of the bonds (including derivatives) was 2.31% in 2019 (2.24% in 2018).
Debt covenants are not included in the terms and conditions of outstanding bonds and financing arrangements.
Debt maturity profile at 31 Dec 2019
| Due date | Amount in € mln |
|---|---|
| 26 Sep 2022 | 500 |
| 03 Apr 2024 | 500 |
| 09 Apr 2025 | 500 |
| 28 Sep 2026 | 750 |
Bond details
| Rate, Currency & Period | 0.75%, €, 2016 - 2026 |
|---|---|
| Issuer | Koninklijke DSM N.V. |
| Rating | Moody's: A3, Standard & Poor's: A- |
| Listing | NL |
| ISIN Code | XS149537350 |
| Volume | €750 million |
| Issue price | 99.799% |
| Coupon | 0.75% |
| Term | 10 years |
| Maturity | 28 Sep 2026 |
| Rate, Currency & Period | 1.00%, €, 2015 - 2025 |
|---|---|
| Issuer | Koninklijke DSM N.V. |
| Rating | Moody's: A3, Standard & Poor's: A- |
| Listing | NL |
| ISIN Code | XS1215181980 |
| Volume | €500 million |
| Issue price | 99.41% |
| Coupon | 1.00% |
| Term | 10 years |
| Maturity | 09 Apr 2025 |
| Rate, Currency & Period | 1.375%, €, 2015 - 2022 |
|---|---|
| Issuer | Koninklijke DSM N.V. |
| Rating | Moody's: A3, Standard & Poor's: A- |
| Listing | NL |
| ISIN Code | XS1293087703 |
| Volume | €500 million |
| Issue price | 99.84% |
| Coupon | 1.38% |
| Term | 7 years |
| Maturity | 26 Sep 2022 |
| Rate, Currency & Period | 2.375%, €, 2014 - 2024 |
|---|---|
| Issuer | Koninklijke DSM N.V. |
| Rating | Moody's: A3, Standard & Poor's: A- |
| Listing | NL |
| ISIN Code | XS1041772986 |
| Volume | €500 million |
| Issue price | 99.56% |
| Coupon | 2.38% |
| Term | 10 years + 1 month |
| Maturity | 03 Apr 2024 |
Liabilities structure as at 31 Dec 2019
| 2019 | 2018 | |||
|---|---|---|---|---|
| Borrowings amount in € millon | Total | of which current | Total | of which current |
| Debenture loans | 2,244 | - | 2,543 | 300 |
| Private loans | 41 | 8 | 16 | 7 |
| Finance lease liabilities | 236 | 49 | 21 | 1 |
| Credit institutions/commercial paper | 132 | 132 | 72 | 72 |
| Total | 2,653 | 189 | 2,652 | 380 |
Committed credit facility
DSM holds a €1.0 billion revolving committed facility (RCF), which serves as back-up funding. The interest rate of this RCF is linked to DSM's Greenhouse Gas (GHG) emission reductions.
| Borrower | Koninklijke DSM N.V. |
| Senior unsecured long-term rating | Moody's: A3, Standard & Poor's: A- |
| Facility amount | €1,000 million |
| Maturity | 29 May 2024 (1st extension option executed, 2nd extension option due Q1 2020). |
| Purpose | General |
| Financial covenants | None |
| MAC clause | None |
€5 billion debt issuance program
Royal DSM's €5 billion Debt Issuance Program is a framework with standard terms & conditions, which are applicable if Notes are issued. Additionally, the Debt Issuance Program includes risk factors, company description, financial information and the form of final terms of various kinds of debt. These terms & conditions, form of final terms, risk factors and financial information on Royal DSM are laid down in the Base Prospectus.
The Dutch Authority for the Financial Markets (AFM), which is responsible for supervising the operation of the financial markets approved the Prospectus on 28 November 2018. This approval is valid for 1 year.
€1.5 billion commercial paper program
Royal DSM's Euro Commercial Paper Program is a framework with standard terms and conditions which are applicable if Notes are issued. The Euro Commercial Paper Program is not quoted on a Stock Exchange. The terms & conditions of this program are laid down in the Prospectus.
| Issuer | Koninklijke DSM N.V. |
| Short term rating | Moody's: P-2, Standard & Poor's: A-2 |
| Date of implementation | 13 Sep 2011 |
| Maximum Volume | €1,500,000,000 |
| Tenor | Between 1 and 364 days |
| Minimum denomination | €100,000 or £100,000 |
| Clearing agent | Euroclear & Clearstream |
| Dealers | Citibank International, Royal Bank of Scotland, Deutsche Bank, BNP Paribas Fortis, ING Bank and RABO Bank. |
| Issuing & Paying agent | Citibank, London |
Credit rating
Rating agencies and DSM senior management hold regular review meetings as part of our aim of maintaining a strong investment grade long-term credit rating for senior unsecured debt.
The rating agencies Moody’s and Standard & Poors have awarded the following ratings for the company’s long- and short-term debt.
| Agency | Long/short-term rating | Outlook | Last Updated |
|---|---|---|---|
| Moody's | A3/P-2 | Stable | 09 Aug 2019 |
| Standard & Poor's | A-/A-2 | Stable | 04 Sep 2019 |
Legal disclaimer
This website contains information and documents which are for information purposes only. They neither constitute an offer nor an invitation nor a recommendation to subscribe to or to purchase, to hold or sell securities, nor are the information or documents contained on this website meant to serve as a basis for any kind of obligation, contractual or otherwise.
Publication of prospectuses on this website is done in accordance with legal requirements in connection with the admission to trading of securities.
Distribution of information and documents contained on this website, especially prospectuses, may be forbidden or limited by legislation of some jurisdictions.
Access is denied to persons to whom these restrictions in such jurisdictions apply. Each visitor to this website is required to inform himself accordingly and to comply with applicable restrictions. Koninklijke DSM N.V. is in no way liable for any such infringement.
THE INFORMATION AND DOCUMENTS CONTAINED ON THIS WEBSITE ARE NOT DIRECTED AT AND MAY NOT BE VIEWED BY OR DISTRIBUTED TO ANY PERSON RESIDENT IN THE UNITED STATES OF AMERICA.
By entering the following parts of this website you confirm that you are not a resident of the United States of America and that you will not distribute any of the information and documents contained thereon to any person resident in the United States of America.
You further acknowledge that the following information and documents neither constitute an offer nor an invitation nor a recommendation to subscribe to or to purchase, to hold or sell securities.
Read more
-
-
Why invest in DSM
DSM is positioned to drive continued above market organic growth and deliver further improvement in profitability, shareholder return and sustainability as we execute Strategy 2021.
-
Analysts & Vara consensus
The sell-side analysts covering DSM and latest Vara consensus figures.