DS Smith funds its operations from the following sources of capital: operating cashflow, borrowings, shareholders’ equity and, where appropriate, disposals of non-core businesses.
The Group’s objective is to achieve a capital structure that results in an appropriate cost of capital whilst providing flexibility in short and medium-term funding so as to accommodate material investments or acquisitions. The Group also aims to maintain a strong balance sheet and to provide continuity of financing by having a range of maturities and borrowings from a variety of sources.
DS Smith finances its operations using a number of funding instruments, including Medium-term notes, private placement debt and bank borrowings.
Borrowing facilities as at 30 April 2022
|Facilities||Currency||Maturity||£ million equivalent|
|Syndicated RCF 2018||various||2024-25||1,400|
|Euro medium-term notes||EUR||2022-26||1,552|
|Euro RCF 2020||EUR||2024||50|
|Sterling bond medium-term note||GBP||2029||250|
|US dollar private placement||USD||2022||213|
|Euro term loan||EUR||2025||23|
Analysis of Gross Debt at 30 April 2022
Available committed facilities as at 30 April 2022
DS Smith has been given a credit rating of BBB- by Standard & Poor’s.
Euro Medium-term Note Programme
|Maturity date||Issued amount||Coupon||Interest paid||Date||Minimum denominations|
|16 September 2022*||€500m||2.25%||annually||16 September||€100k|
|26 July 2024||€750m||1.375%||annually||26 July||€100k|
|12 September 2026||€600m||0.875%||annually||12 September||€100k|
|26 July 2029||£250m||2.875%||annually||26 July||£100k|
*Redeemed July 2022