Debt & credit overview

External sources of funding

Debt and credit rating

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 revolving committed credit facilities.

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 23 Jun 2020

Due date Amount in € mln
26 Sep 2022 500
03 Apr 2024 500
09 Apr 2025 500
28 Sep 2026 750
23 Jun 2028 500
23 Jun 2032 500

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
Rate, Currency & Period 0.25%, €, 2020 - 2028
Issuer Koninklijke DSM N.V.
Rating Moody's: A3, Standard & Poor's: A-
Listing NL
ISIN Code XS2193978363
Volume €500 million
Issue price 99.65%
Coupon 0.25%
Term 8 years 
Maturity 23 Jun 2028
Rate, Currency & Period 0.625%, €, 2020 - 2032
Issuer Koninklijke DSM N.V.
Rating Moody's: A3, Standard & Poor's: A-
Listing NL
ISIN Code XS2193979254
Volume €500 million
Issue price 99.13%
Coupon 0.63%
Term 12 years 
Maturity 23 Jun 2032

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 facilities

DSM holds a €1.0 billion revolving committed credit 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 2025 (First and second extension options exercised)
Purpose General
Financial covenants None
MAC clause None

In addition to this €1.0 billion RCF, in April 2020 DSM established further bi-lateral RCFs totaling €500 million. These are a precaution against potential negative impacts on DSM’s liquidity due to the COVID-19 crisis. The tenors of these bilateral RCFs range from 12 months (with extension options) to 2 years.

Borrower Koninklijke DSM N.V.
Senior unsecured long-term rating Moody's: A3, Standard & Poor's: A-
Total bi-lateral facilities amount €500 million
Tenor Between 12 months (with extension options) and 2 years
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 29 May 2020. This approval is valid for 1 year.

The AFM has further approved the First Supplement to the Base Prospectus dated 17 June 2020.

As required by the AFM,  we are required to maintain a list of prospectuses, documents referred to in the prospectuses, supplements to the prospectuses and/or the final terms of base prospectuses for a period of 10 years:

€2 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 Memorandum.

Issuer Koninklijke DSM N.V.
Short term rating Moody's: P-2, Standard & Poor's: A-2
Date of implementation 15 May 2020
Maximum Volume €2,000,000,000
Tenor Between 1 and 364 days
Minimum denomination €100,000 or £100,000
Clearing agent Euroclear
Dealers ABN AMRO Bank N.V., BNP Paribas Fortis SA/NV, Citigroup Global Markets Europe AG, Citigroup Global Markets Limited, Coöperatieve Rabobank U.A., ING Bank N.V. and NatWest Markets N.V.
Issuing & Paying agent Citibank, N.A., London branch

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 06 Oct 2020
Standard & Poor's A-/A-2 Stable 12 Jun 2020

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