Debt Investors


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, 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

N/A

N/A

USD 15bn

A-2 / P-2

USD 0

Euro Medium Term Note Programme

Jun-19

Jun-20

USD 10bn

A3 / BBB+

USD 3.7bn

SEC Shelf Registration Statement

Nov-16

Nov-19

Unlimited

A3 / BBB+

USD 13.4bn

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.

Outstanding bonds

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 1,600 16-Nov-15 16-Nov-20 2.375% Semi-annual US046353AK44
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 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
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

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 Stable Stable


Key contacts at the respective agencies are:

Moody’s

Analyst: Frederic Duranson

Phone: +44-20-7772-1950

S&P

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.


Investment policy

  • 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
     

Credit Risk

  • Cash managed centrally
  • Derivatives positions fully collateralised
     

Liquidity Policy

  • Prudent level of available cash and unutilised credit facilities
  • Group funding centrally managed

Debt IR presentations

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




Contact Us


Craig Marks

Senior Director of Investor Relations

Jonathan Slade

Group Treasurer


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