Liquid Assets and Net Financial Debt

Net Financial Debt1

 

 

Dec. 31, 2015

 

March 31, 2016

 

Change

 

 

€ million

 

€ million

 

%

1

Net financial debt is not defined in the International Financial Reporting Standards and is calculated as shown in this table.

2

Classified as debt according to IFRS

3

These include short-term loans and receivables with maturities between 3 and 12 months outstanding from banks and other companies as well as available-for-sale financial assets and held-to-maturity financial investments that were recorded as current on initial recognition.

Bonds and notes / promissory notes

 

15,547

 

16,153

 

+3.9

of which hybrid bonds2

 

4,525

 

4,526

 

.

Liabilities to banks

 

2,779

 

2,805

 

+0.9

Liabilities under finance leases

 

474

 

449

 

−5.3

Negative fair values of hedges of recorded transactions

 

753

 

632

 

−16.1

Other financial liabilities

 

369

 

255

 

−30.9

Positive fair values of hedges of recorded transactions

 

(350)

 

(265)

 

−24.3

Financial liabilities

 

19,572

 

20,029

 

+2.3

Cash and cash equivalents

 

(1,859)

 

(3,552)

 

+91.1

Current financial assets3

 

(264)

 

(154)

 

−41.7

Net financial debt

 

17,449

 

16,323

 

−6.5

  • Net financial debt of the Bayer Group declined by €1.1 billion between December 31, 2015, and the end of the first quarter, due mainly to cash inflows from the sale of the Diabetes Care business.
  • Net financial debt includes three subordinated hybrid bonds with a total volume of €4.5 billion, 50% of which is treated as equity by Moody’s and Standard & Poor’s. The hybrid bonds thus have a more limited effect on the Group’s rating-specific debt indicators than conventional borrowings.
  • In March 2016, Covestro AG issued three tranches of bonds with a nominal volume of €500 million each under its newly established Debt Issuance Program: one tranche with a fixed-rate coupon of 1.00% and a maturity of five-and-a-half years; one tranche with a fixed-rate coupon of 1.75% and a maturity of eight-and-a-half years; and one tranche with a floating-rate coupon of 60 basis points over three-month Euribor and a maturity of two years.
  • In January 2016, Bayer AG redeemed at maturity a bond with a nominal volume of €500 million issued under its Debt Issuance Program (previously known as the multi-currency European Medium Term Notes program).
  • The other financial liabilities as of March 31, 2016, included commercial paper of €146 million.
  • Standard & Poor’s gives Bayer a long-term issuer rating of A– with stable outlook, while Moody’s gives us a long-term rating of A3 with stable outlook. The short-term ratings are A–2 (Standard & Poor’s) and P–2 (Moody’s). These investment-grade ratings document good creditworthiness.