Bertelsmann Bonds / Credit Rating
Bertelsmann uses various financial instruments to diversify its financing sources. In this context the capital market plays an important part in Bertelsmann's financial strategy.
Financing instruments
In the last years Bertelsmann has successfully established at the international capital markets. With larger capital market transactions Bertelsmann attracted new groups of investors (amongst others US Private Placement) and emitted various issues with benchmark status. Currently listed bonds with a total volume of EUR 2.7 billion are outstanding. Bertelsmann is one of the largest issuer of EUR-bonds in the media-segment.
Bertelsmann has access to both variable and fixed-rate financing through various lines of credit. A syndicated line of credit has been in place since October 2004, which was renewed in 2011 and expires in 2016. Bertelsmann AG can utilize these to draw down up to EUR 1.2 billion of revolving funds in euros, U.S. dollars and pounds sterling.
Financial strategy
The primary objective of Bertelsmann`s financial policy is to achieve a balance between financial security, return on equity and growth. Accordingly, the Group`s financing policy is based on the requirements of a "BBB+/Baa1" credit rating and the qualitative/ quantitative criteria pertaining thereto. Credit ratings and transparency are of great importance to Bertelsmann`s financial security and independence.
The Bertelsmann Group is centrally financed by Bertelsmann AG and its financing company Bertelsmann U.S. Finance LLC. Bertelsmann AG provides the Group companies with liquidity and manages the issuance of guarantees and letters of comfort for Group companies. The Group widely forms a single financial unit, thereby optimizing capital procurement and investment opportunities.
Since 2002, Bertelsmann has had credit ratings from the agencies Standard & Poor’s and Moody’s in the Investment Grade area. Thanks to its good credit rating, Bertelsmann can finance itself on the financial market on reasonable terms.
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News
Bertelsmann records significant profit hike in Q1-2012
Revenues up five percent to €3.64 billion Operating EBIT rises to €280 millionGroup profit increases to €147 million
Bertelsmann’s Annual General Meeting resolves change of legal form to SE & Co. KGaA
Hartmut Ostrowski, Werner Bauer and Helmut Gettkant appointed to Supervisory Board
Bertelsmann initiates long-term reshaping
Four strategic approaches: consolidation, digital transformation, growth platforms and growth regionsGroup revenues increased to €15.3 billion in 2011At €1.75 billion, Operating EBIT remains...
Bertelsmann announces preliminary figures for 2011
Slight growth in revenues and solid operating EBIT
Bertelsmann’s Revenues and Group Profit Up Year-on-Year After Nine Months of 2011
Revenues increase to €10.7 billionOperating EBIT stable at €1.03 billion Group profit rises to €377 millionBertelsmann, the international media group, reports increased revenues and Group profit...
