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.

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:

AgencyLong/short-term ratingOutlookLast Updated
Moody'sA3/P-2Stable18 April 2023
Standard & Poor'sA-/A-2Stable18 April 2023

DSM’s credit is only rated by S&P Global Ratings (S&P) and Moody’s to which DSM provides accurate information necessary for their rating analyses, such as our management strategy, financial policies and financing matters.

DSM has not obtained a credit rating from Scope and DSM has not provided any information to Scope. Therefore Scope’s unsolicited opinions and publications regarding DSM are based on their subjective assumptions and hypotheses with no reasonable basis for support.

Debt

DSM aims to spread the maturity profile of outstanding bonds in order to have adequate financial flexibility. The average effective interest rate on the portfolio of borrowings outstanding in 2022, including hedge instruments related to these borrowings, amounted to 1.90% (2021: 1.86%).

Debt covenants are not included in the terms and conditions of outstanding bonds and financing arrangements.

Debt maturity profile at 31 December 2023

Due dateAmount in € mln
03 Apr 2024500
09 Apr 2025500
28 Sep 2026750
23 Jun 2028500
23 Jun 2032500

€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 2 June 2021. This approval is valid for 1 year.

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:

Outstanding bonds in detail

Rate, Currency & Period0.75%, €, 2016 - 2026
IssuerKoninklijke DSM N.V.
RatingMoody's: A3, Standard & Poor's: A-
ListingNL
ISIN CodeXS149537350
Volume€750 million
Issue price99.799%
Coupon0.75%
Term10 years 
Maturity28 Sep 2026
Rate, Currency & Period1.00%, €, 2015 - 2025
IssuerKoninklijke DSM N.V.
RatingMoody's: A3, Standard & Poor's: A-
ListingNL
ISIN CodeXS1215181980
Volume€500 million
Issue price99.41%
Coupon1.00%
Term10 years 
Maturity09 Apr 2025
Rate, Currency & Period2.375%, €, 2014 - 2024
IssuerKoninklijke DSM N.V.
RatingMoody's: A3, Standard & Poor's: A-
ListingNL
ISIN CodeXS1041772986
Volume€500 million
Issue price99.56%
Coupon2.38%
Term10 years + 1 month
Maturity03 Apr 2024
Rate, Currency & Period0.25%, €, 2020 - 2028
IssuerKoninklijke DSM N.V.
RatingMoody's: A3, Standard & Poor's: A-
ListingNL
ISIN CodeXS2193978363
Volume€500 million
Issue price99.65%
Coupon0.25%
Term8 years 
Maturity23 Jun 2028
Rate, Currency & Period0.625%, €, 2020 - 2032
IssuerKoninklijke DSM N.V.
RatingMoody's: A3, Standard & Poor's: A-
ListingNL
ISIN CodeXS2193979254
Volume€500 million
Issue price99.13%
Coupon0.63%
Term12 years 
Maturity23 Jun 2032

Liabilities structure as at 31 Dec 2022

 20222021
Borrowings amount in € millonTotalof which currentTotalof which current
Debenture loans2,741-2,739-
Private loans1161411512
Lease liabilities1794420249
Credit institutions28284242
Total3,064863,098103

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.

BorrowerKoninklijke DSM N.V.
Senior unsecured long-term ratingMoody's: A3, Standard & Poor's: A-
Facility amount€1,000 million
Maturity29 May 2025 (First and second extension options exercised)
PurposeGeneral
Financial covenantsNone
MAC clauseNone

€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.

IssuerKoninklijke DSM N.V.
Short term ratingMoody's: P-2, Standard & Poor's: A-2
Date of implementation15 May 2020
Maximum Volume€2,000,000,000
TenorBetween 1 and 364 days
Minimum denomination€100,000 or £100,000
Clearing agentEuroclear
DealersABN 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 agentCitibank, N.A., London branch

 

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