Debt investors

DS Smith funds its operations from the following sources of capital: operating cashflow, borrowings, shareholders’ equity and, where appropriate, disposals of non-core businesses.

The Group’s objective is to achieve a capital structure that results in an appropriate cost of capital whilst providing flexibility in short and medium-term funding so as to accommodate material investments or acquisitions. The Group also aims to maintain a strong balance sheet and to provide continuity of financing by having a range of maturities and borrowings from a variety of sources.

Borrowing facilities

DS Smith finances its operations using a number of funding instruments, including Medium-term notes, private placement debt and bank borrowings.

Borrowing facilities as at 30 April 2017

FacilityCurrencyCommitted funds millionMaturity£ million equivalent
Syndicated bank RCF GBP 800 2020 800
EMTN EUR 500 2022
422
Term loan facilities EUR 270 2018-21
228
Private placement EUR 118 2018-20
 100
Private placement USD 400 2017-22 297*
Total       1,847

* Net of cross-currency interest rate swaps

Analysis of Gross Debt at 30 April 2017

Available committed facilities as at 30 April 2017

DS Smith has been given a credit rating of BBB- by Standard & Poor’s.

Euro Medium-term Note Programme

Maturity date Issued amountCouponInterest paidDate Minimum denominations
16 September 2022 €500m 2.25% annually 16 September €100k