Investor Relations

Debt info

Philips' rating

 

Philips’ existing long-term debt is rated A- by Fitch, Baa1 by Moody’s and BBB+ by Standard & Poor’s (all with stable outlook). We are committed to a strong investment grade credit rating. There is no assurance that we will be able to achieve this goal and ratings are subject to change at any time.

Agency
Long-term
Short-term
Outlook
Fitch
A-
-
Stable
Moody's
Baa1
P - 2
Stable
Standard & Poor's
BBB+
A - 2
Stable

Recent events

Green & Sustainability Innovation Bond Framework

Philips launched a dual Green and Sustainability Innovation Bond program to finance its sustainability activities. The Bonds under the program follow the International Capital Market Association (ICMA) Green Bond Principles 2018 (GBP)1, Social Bond Principles 2018 (SBP)2 and the ICMA Sustainability Bond Guidelines 2018 (SBG)3, and have been verified by Sustainalytics.

 

Philips can issue Bonds under the combined Green and Sustainability Innovation Bond Framework and will label the Bonds as either “Green Innovation Bonds” or “Sustainability Innovation Bonds” accordingly.

Debt maturity

 

Characteristics of long-term debt

  • Total net debt position of EUR 4.2 billion
  • Maturities up to 2042
  • Average tenor of long-term debt is 9.8 years3
  • No financial covenants
  • Operating leases (approximately EUR 800 million) have been reclassified as debt per 1 January 2019 under IFRS 16
  • Philips exercised, with existing terms and conditions, the second extension options of its EUR 1 billion committed standby revolving credit facility, extending the maturity date to April 21, 2024
Debt maturity Q1 2019

1 Short term debt includes local credit facilities that are being rolled forward on a continuous basis;
2 Debt includes forward transactions entered into as part of share repurchase programs for share cancellation and LTI purposes;

3 Based on long-term debt only (including short-term portion of long-term debt), excludes short-term debt and forward share repurchases for share cancellation and LTI purposes

The profile of the outstanding bonds is reflected in the table below
Outstanding bonds
Interest rate
Issue date
Maturity
EUR 500 million
3M Euribor + 20bps
2017
2019
EUR 500 million
0.500%
2017
2023
EUR 500 million
0.750%
2018
2024
USD 84 million
7.125%
1995
2025
USD 63 million
7.750%
1995
2025
USD 137 million
7.200%
1996
2026
EUR 750 million
0.500%
2019
2026
EUR 500 million
1.375%
2018
2028
USD 726 million
6.875%
2008
2038
USD 500 million
5.000%
2012
2042
In addition to the bonds, Philips has a fully drawn subordinated loan of EUR 200 million in place with final maturity in 2025.

Standby facility - EUR 1.0 billion Revolving Credit Facility

Key terms & conditions
Borrower
Royal Philips
Facility amount
EUR 1.0 billion
Purpose
  • General corporate purposes
  • Backstop for commercial paper program
Maturity
April 2024
Financial ratio covenants
None
MAC clauses
None

Debt / Equity ratio

Debt / Equity ratio

Contingent liabilities