- 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, 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 30 September 2019, of which $3.4bn will mature in April 2022
- 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.
A summary of utilisation from the Company’s debt programmes as at 30 September 2019 is shown in the table below.
|Programme||Last updated||Valid to||Limit||Rating (Moody's/ S&P)||Utilisation as at 30 September 2019|
US Commercial Paper
A-2 / P-2
Euro Medium Term Note Programme
A3 / BBB+
SEC Shelf Registration Statement
A3 / BBB+
Debt maturity profile
AstraZeneca chooses to hold a significant cash balance to meet operational funding needs. Gross cash and investments position as at 30 September 2019 was $4.9bn
1 Notional bond values. FX converted at 30 September 2019 spot rates (USD/EUR 0.9138; USD/GBP 0.8136). Current portion of leases of $349m are included in 2019, whilst non-current Leases of $363m have been excluded from the chart.
Below is a summary of the bonds issued or guaranteed by AstraZeneca PLC as at 30 September 2019, sorted by maturity date.
|Currency||Notional (m)||Issue date||Maturity date||Coupon||Frequency||ISIN|
|USD||250||12-Jun-17||10-Jun-22||3m Libor + 0.62%||Quarterly||US046353ap31|
|USD||400||17-Aug-18||17-Aug-23||3m Libor + 0.665%||Quarterly||US046353AS79|
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:
Key contacts at the respective agencies are:
Analyst: Frederic Duranson
Analyst: Nicolas Baudouin
Phone: +33-1-4420- 6672
Treasury risk management policies
The Company operates with a centralised Treasury structure so that key Treasury risks are managed at a Group level.
- Security and liquidity
- Financial counterparty limits
Foreign Exchange Policy
- Foreign Exchange exposures managed centrally
- Transactional currency exposures substantially hedged
Interest Rate Policy
- Level of floating rate debt matched to cash
- Significant portion of financial liabilities at fixed interest rates
- Cash managed centrally
- Derivatives positions fully collateralised
- Prudent level of available cash and unutilised credit facilities
- Group funding centrally managed
Debt IR presentations
Our Annual Report provides a wide range of information about our global business.
Our pipeline forms a robust portfolio of investigational therapies in varied stages of clinical development
Answers to frequently asked shareholder questions.