Debt Investors
Capital allocation principles
The Board’s aim is to continue to strike a balance between the interests of the business, financial creditors and the Company’s shareholders. After providing for investment in the business, supporting the progressive dividend policy and maintaining a strong, investment-grade credit rating, the Board will keep under review potential investment in immediately earnings-accretive, value-enhancing opportunities.
Funding strategy
- The Board reviews the Company’s ongoing liquidity risks annually as part of the planning process and on an ad-hoc basis.
- The Board considers short-term requirements against available sources of funding, taking into account forecast cash flows.
- The Company manages liquidity risk by maintaining access to a number of sources of funding which are sufficient to meet anticipated funding requirements.
- Specifically, the Company uses US commercial paper and/or Euro-commercial paper programmes, committed bank facilities and cash resources to manage short-term liquidity.
- The Company has $4.1bn of revolving committed credit facilities provided by 9 relationship banks. These facilities were undrawn as at 31 December 2020, of which $3.4bn will mature in April 2024.
- In respect of AstraZeneca’s announcement on 12 December 2020 to acquire Alexion Pharmaceuticals, Inc., the Company has executed a further $17.5bn of committed bank facilities. They were undrawn at 31 December 2020.
- The Company maintains strong access to the capital markets for long-term funding through an established Euro Medium Term Note (EMTN) programme and a SEC registered shelf programme.
- These different funding programmes ensure that the Company has sufficient flexibility when choosing the maturity, currency, interest rate (fixed/floating), and geographical mix of investors.
Programme | Last updated | Valid to | Limit | Rating (Moody's/ S&P) | Utilisation as at 31 December 2020 |
---|---|---|---|---|---|
US Commercial Paper |
N/A |
N/A |
USD 15bn |
A-2 / P-2 |
None |
Euro-Commercial Paper |
12 May 2020 |
N/A |
EUR 10bn |
Issuer rating |
None |
Jun-20 |
Jun-21 |
USD 10bn |
A3 / BBB+ |
USD 4.1bn |
|
SEC Shelf Registration Statement |
Nov-19 |
Nov-22 |
Unlimited |
A3 / BBB+ |
USD 15.8bn |
Debt maturity profile
AstraZeneca chooses to hold a significant cash balance to meet operational funding needs. Gross cash and investments position as at 31 December 2020 was $8.0bn
1 Notional bond values. FX converted at 31 December 2020 spot rates (USD/EUR 0.813; USD/GBP 0.733). Current portion of leases of $192m are included in 2021, whilst non-current Leases of $489m have been excluded from the chart.
Outstanding bonds
Below is a summary of the bonds issued or guaranteed by AstraZeneca PLC as at 31 December 2020, sorted by maturity date.
Currency | Notional (m) | Issue date | Maturity date | Coupon | Frequency | ISIN |
---|---|---|---|---|---|---|
EUR | 500 | 12-May-16 | 12-May-21 | 0.25% | Annual | XS1411403709 |
EUR | 750 | 24-Nov-14 | 24-Nov-21 | 0.875% | Annual | XS1143486865 |
USD | 250 | 12-Jun-17 | 10-Jun-22 | 3m Libor + 0.62% | Quarterly | US046353ap31 |
USD | 1,000 | 12-Jun-17 | 12-Jun-22 | 2.375% | Semi-annual | US046353AQ14 |
USD | 850 | 17-Aug-18 | 17-Aug-23 | 3.50% | Semi-annual | US046353AR96 |
USD | 400 | 17-Aug-18 | 17-Aug-23 | 3m Libor + 0.665% | Quarterly | US046353AS79 |
USD | 287 | 15-Nov-93 | 15-Nov-23 | 7.00% | Semi-annual | US98934KAB61 |
EUR | 900 | 12-May-16 | 12-May-24 | 0.75% | Annual | XS1411404855 |
USD | 2,000 | 16-Nov-15 | 16-Nov-25 | 3.375% | Semi-annual | US046353AL27 |
USD | 1,200 | 06-Aug-20 | 08-Apr-26 | 0.70% | Semi-annual | US046353AV09 |
USD | 750 | 12-Jun-17 | 12-Jun-27 | 3.125% | Semi-annual | US046353AN82 |
EUR | 800 | 12-May-16 | 12-May-28 | 1.25% | Annual | XS1411404426 |
USD | 1,000 | 17-Aug-18 | 17-Jan-29 | 4.00% | Semi-annual | US046353AT52 |
USD | 1,300 | 06-Aug-20 | 06-Aug-30 | 1.375% | Semi-annual | US046353AW81 |
GBP | 350 | 13-Nov-07 | 13-Nov-31 | 5.75% | Annual | XS0330497149 |
USD | 2,750 | 12-Sep-07 | 15-Sep-37 | 6.45% | Semi-annual | US046353AD01 |
USD | 1,000 | 18-Sep-12 | 18-Sep-42 | 4.00% | Semi-annual | US046353AG32 |
USD | 1,000 | 16-Nov-15 | 16-Nov-45 | 4.375% | Semi-annual | US046353AM00 |
USD | 750 | 17-Aug-18 | 17-Aug-48 | 4.375% | Semi-annual | US046353AU26 |
USD | 500 | 06-Aug-20 | 06-Aug-50 | 2.125% | Semi-annual | US046353AX64 |
Credit ratings
AstraZeneca PLC aims to maintain a strong, investment grade credit rating. The Company has solicited credit ratings from Moody’s and S&P, which are assigned as:
Moody's |
S&P | |
---|---|---|
Short-term rating | P-2 | A-2 |
Long-term rating | A3 | BBB+ |
Outlook | Negative | CreditWatch Positive |
Key contacts at the respective agencies are:
Moody’s
Analyst: Frederic Duranson
Phone: +44-20-7772-1950
S&P
Analyst: Marketa Horkova
Phone: +44 207 176 3743
Treasury risk management policies
The Company operates with a centralised Treasury structure so that key Treasury risks are managed at a Group level.
Liquidity Policy
- Prudent level of available cash and unutilised credit facilities
- Group funding centrally managed
Investment policy
- Security and liquidity
- Financial counterparty limits
Foreign Exchange Policy
- Foreign Exchange exposures managed centrally
- Transactional currency exposures substantially hedged
Interest Rate Policy
- Aim to broadly match level of floating rate debt to cash over time
- Significant portion of financial liabilities at fixed interest rates
Credit Risk
- Cash managed centrally
- Derivatives positions fully collateralised
Debt IR presentations
Debt investor update, 11 February 2021
Debt investor update, 30 July 2020
Debt investor update, 14 February 2020
Debt investor update, 7 August 2019
Debt investor update, 21 February 2019
Debt investors update, 14 August 2018
Debt investor update, USA, 19-23 March 2018
Press Releases
04 August 2020 - 07:00
Contact Us
Craig Marks
Senior Director of Investor Relations
Jonathan Slade
Group Treasurer
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