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To preserve a balanced capital structure and match financial resources with funding requirements, the key guidelines are that long-term debt is primarily used to support long-term investments, while short-term debt is used to support ongoing business in financing its main working capital needs.

Our financing model ensures that long-term debt is centralized at Group level, while short-term debt is decentralized to support daily operations, which gives flexibility to local teams. Our balance sheet structure dictates that around 70% of liquid assets should be financed with short-term resources. However, as a facilitator for the business, Finance may temporarily adjust its balance sheet structure to ensure support of growth ambitions while providing cost-efficient funding for ongoing operations. LDC’s equity management also ensures sustainable and ambitious growth through the allocation of at least 50% of prior year’s net income to retained earnings. Current practice also dictates that dividends are capped to 50% of prior year’s net income. In addition, however, proceeds from potential strategic divestments may discretionarily be distributed to shareholders.

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Diversified sources of funds

29% of long-term financing came from debt capital markets
Debt maturity icon

Well-distributed debt maturity profile

Average maturity of long-term debt of 4.5 years
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Sizeable amount of committed facilities

US$4.5 billion of undrawn committed bank lines

Sound Balance Sheet Structure

13,607
Fixed assets & investments 4,566
Other non-current assets (net) 180
Less liquid working capital 1,535
RMI 5,277
Liquid assets below 3 months 522
Current financial assets 1,527
Use of Capital
13,607
Equity 6,664
LT Debt 4,688
ST Debt 2,255
Source of Capital
13,607
Fixed assets & investments 4,566
Other non-current assets (net) 180
Less liquid working capital 1,535
RMI 5,277
Liquid assets below 3 months 522
Current financial assets 1,527
Use of Capital
13,607
Equity 6,664
LT Debt 4,688
ST Debt 2,255
Source of Capital

Long-term Financing Split by Nature

2023 (In US$ million)
Debt capital markets 1,267 %
Term loans from banks 3,068 %
2022 (In US$ million)
Debt capital markets 1,522 %
Term loans from banks 2,790 %
Debt capital markets Term loans from banks

Long-term Financing Maturity

In US$ million 2023 2022
0 0 Maturity between 1-3 years
0 0 Maturity between 3-5 years
0 0 Maturity above 5 years

Debt Capital Markets

Bonds

ISIN CodeCurrencyAmountCouponMaturityMarket
XS2264074647EUREUR650m2.375%27/11/2025Luxembourg stock exchange
XS2332552541EUREUR500m1.625%28/04/2028Luxembourg stock exchange

Notices

Issuer’s articles of association