A2A has provided itself with a sound financial structure, by pursuing maximum efficiency in optimizing the debt redemption profile through a proactive funding management aimed at seizing all opportunities offered by capital markets.
The focus on an adequate debt structure contributes to position the Group as an "Investment grade" issuer, as assessed by Moody's and Standard & Poor's
A2A can count on a wide range of funding sources obtainable at competitive costs through private lending and capital markets.
Courtesy of an effective sources diversification, A2A is able to meet its foreseeable short and long-term funding needs.
As of 30 september 2022
9M 2022
9M 2022
9M 2022
| Key Ratios | 9M 2022 | FY 2021 |
|---|---|---|
| Net Debt/Equity (x) | 1.08 | 0.96 |
| Net Debt/EBITDA (x) | n.a. | 2.88 |
| Interest Coverage Ratio(*)(x) | 0.10 | 0.11 |
| Average Debt Maturity (years) | 5.9 | 6.2 |
| Average Cost of Debt (%) | 1.30% | 1.60% |
| Cash & Cash Equivalent | € 3.5bn | € 2.1bn |
| of which: | ||
| Undrawn Credit Facilities | € 1.2bn | € 1.1bn |
| Cash | € 2.3bn | € 1.0bn |
(*) This ratio is calculated as Net Financial Charges/EBIT
as of 30 september 2022
| Type of Debt (mln €) | Accounting balance 30/09/2022 |
Amount due in | |||||
|---|---|---|---|---|---|---|---|
| 31/12/2022 | 31/12/2023 | 31/12/2024 | 31/12/2025 | 31/12/2026 | beyond | ||
| Bonds | 4,949 | 30 | 300 | 300 | 299 | 595 | 3,425 |
| Bank loans and other | 2,6822 | 329 | 528 | 104 | 105 | 85 | 1,531 |
| TOTAL | 7,631 | 359 | 828 | 404 | 404 | 680 | 4,956 |
Sources: A2A 1H 2022 Results
As of 30 september 2022, bank borrowings and other financing obtained by the A2A Group may be broken down as follows:
| Type | 30 september 2022 | 31 December 2021 | ||||
|---|---|---|---|---|---|---|
| No derivatives | With derivatives | % con derivati | senza derivati | With derivatives | % con derivati | |
| Fixed rate | 5,583 | 5,771 | 76% | 3,844 | 4,005 | 79% |
| Floating rate | 2,048 | 1,860 | 24% | 1,255 | 1,094 | 21% |
| Total | 7,631 | 7,631 | 100% | 5,099 | 5,099 | 100% |
The currently outstanding bonds issued by A2A Group account for over € 4.0 bn.
It should be noted that Euro Bonds 2033, 2032, 2031, 2030, 2029, 2028, 2027, 2026 and 2025 and Private Placement 2023 and 2024 were issued under the EMTN Programme and that the current bond rating – where applicable, is different from the issue rating and is equal to the M/L term rating assigned to the Company by S&P and Moody’s.
The bonds of the A2A Group are listed below.
Rating Agencies’ assessment on A2A’s creditworthiness witnesses the sound financial position of the Group.
The view of rating agencies on A2A debt.
| Agencies | View | Current rating | Last change on |
|---|---|---|---|
| Standard & Poor's | M/L Term Rating Short-Term Rating Outlook |
BBB A-2 Negative |
13/05/2022 |
| Moody's | M/L Term Rating Outlook |
Baa2 Negative | 09/08/2022 |
Sustainable finance is one of the enablers of A2A Strategic Plan 2021-2030. A2A believes the issuance of all types of sustainable finance instruments is crucial to promote the transition toward a low-carbon economy.
Following its first Green Financing Framework published in July 2019, A2A has structured a new Sustainable Financing Framework in May 2021. The Sustainable Finance Framework is fully aligned with ICMA and LMA’s latest principles and it combines both Green/Use of Proceeds and Sustainability-Linked approaches.
Useful resources
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A2A S.p.A. - P.I. 11957540153