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.

For details of financial risks and how the Group manages those risks, please refer to note 21 of the 2016 Annual Report

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 2016

FacilityCommitted funds millionMaturity£ million equivalent
Syndicated bank loan facility £800 2020 800
Private placement US$95 2016 54*
Private placement €118 2018-20
Private placement US$400 2017-22
Public bond €500 2022 393

* Repaid in Full August 2016

Analysis of Gross Debt at 30 April 2016

Available committed facilities as at 30 April 2016, including Term Loan Facility agreed July 2016 

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