Page 130 - Annual Report KELAG Group 2018
P. 130

well as quick, reliable access to cash based on contractually
                                                         agreed facilities. KELAG has financing lines amounting to
                                                         EUR 250m until 2020 and 2021. Furthermore, following the
                                                         very  successful  bonds  issued  in  2012  and  2014  for
                                                         EUR 150m each, KELAG also managed to secure a loan with
                                                         a volume of EUR 90m from the European Investment Bank
                                                         (EIB) in the financial year 2015, which was utilised in the
                                                         years 2015 and 2016.

           Again in the financial year 2018, the generally risk-averse
           focus of the financial strategy remained on the two main
           pillars:  securing  liquidity  and  strengthening  the  Group’s
           credit  standing.  In  this  context,  the  current  financial
           strategy is a system of rules that is embraced by employees
                                                         The  Group  acts  externally  as  a  financial  entity,  thereby
           and is embedded in the overarching corporate strategy. The
                                                         strengthening and optimising its negotiating position vis-
           aim  is  to  maintain  the  Group’s  good  credit  rating  in  a
                                                         à-vis  investors,  banks  and  other  business  partners.
           difficult  business  environment,  even  as  the  economy
                                                         Moreover,  all  short-,  medium-  and  long-term  financing
           becomes more dynamic and thus volatile. Safeguarding an
                                                         measures  are  carried  out  at  KELAG,  which  also  acts  as  a
           adequate liquidity reserve and maintaining a good credit
                                                         pooling centre.
           rating are still the primary objectives that guarantee KELAG
           the  highest  level  of  flexibility  possible  and  unrestricted
           access to the financial markets. In addition, one of the key
           tasks  is  to  centrally  manage  the  balanced  financing  of
           group  entities  in  line  with  their  requirements.  When
           selecting financing structures, the Group aims to diversify
           its sources of finance and thereby safeguard existing bank   The  cost  of  borrowing  and  the  unrestricted  access  to
           credit lines.                                 financial instruments hinge on a company’s credit rating.
                                                         Because  risk  premiums  are  determined  based  on  rating
                                                         categories, maintaining KELAG’s excellent credit rating in
                                                         the long term is of crucial importance. In November 2018,
                                                         Standard &  Poor’s  confirmed  the  good  “A”  rating  with  a
                                                         stable outlook.
           The company still has stable cash inflows from operating
           activities.  The  financial  strategy  for  2018  centred  on

           ensuring that the Group had stable internal financing as
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