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 2019

Facility Currency Committed funds million Maturity £ million equivalent
Syndicated bank RCF GBP 1,400 2023 1,400
EMTN EUR 1,250 2022-24
EMTN GBP 250 2029 250
Term loan facilities EUR 254 2021-25
Private placement EUR 59 2020
Private placement* USD 380 2019-22 286
Former Europac        
Syndicated bank RCF EUR 130 2024 112
Term loan facilities EUR 206 2019-24 178
Total       3,574

* Net of cross-currency interest rate swaps

Analysis of Gross Debt at 30 April 2019

Available committed facilities as at 30 April 2019

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

Euro Medium-term Note Programme

Maturity date  Issued amount Coupon Interest paid Date  Minimum denominations
16 September 2022 €500m 2.25% annually 16 September €100k
26 July 2024 €750m 1.375% annually 26 July €100k
12 September 2026 €600m 0.875% annually 12 September €100k
26 July 2029 £250m 2.875% annually 26 July £100k