RWE has a sound financial base and a stable capital structure. The merging of the renewables, grids and sales businesses into a new subsidiary in 2016 not only resulted in major changes for RWE’s operations – it also necessitated revisions in terms of financing and the classic rating indicators for RWE.
The reason behind this was that our net debt primarily comprises non-current provisions for pensions, the decommissioning of nuclear power stations and the reclamation of mines. We compare this with the value of our financial investment innogy. Since the market value of our investment more than covers the present value of our long-term commitments, traditional debt ratios quickly reach their limits.
Leading ratings agencies certify creditworthiness under the “investment grade” category
The leading ratings agencies of Moody’s and Fitch consistently certify our creditworthiness under the “investment grade” category, not least due to our conservative financial policy. In light of the increased financial flexibility as a result of the IPO of innogy, for example, and the rebate on nuclear fuel tax, we were able to further optimise our capital structure. Our hybrid capital still amounts to around €2 billion (as of August 2018), after we reduced it from €4 billion to about half during the year.
In April, July and October 2017, we repaid three hybrid bonds at the earliest possible time with a nominal converted total value of about €1.3 billion. In addition to these repayments, we used part of the nuclear fuel tax to buy back further hybrid bonds with a nominal converted total value of around €0.6 billion.
Syndicated credit line amounting to €3 billion runs until March 2021
Our short-term financing is permanently secured. We cover our short-term liquidity requirements with the commercial paper programme, which enables us to raise funds with an equivalent value of up to USD 5 billion. Furthermore, we also have a syndicated credit line from an international banking consortium amounting to €3 billion, which runs until March 2021. Our subsidiary innogy has now also established its own credit line.