Debt Investors
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The Board’s aim is to continue to strike a balance between the interests of the business, financial creditors and the Company’s shareholders. The Company’s capital allocation priorities include investing in the business and pipeline, maintaining a strong, investment-grade credit rating, potential value-enhancing business development opportunities, and supporting the progressive dividend policy.
Funding strategy
- The Board reviews the Company’s ongoing liquidity risks annually as part of the planning process and on an ad-hoc basis.
- The Board considers short-term requirements against available sources of funding, taking into account forecast cash flows.
- The Company manages liquidity risk by maintaining access to a number of sources of funding which are sufficient to meet anticipated funding requirements.
- Specifically, the Company uses US commercial paper and/or Euro-commercial paper programmes, committed bank facilities and cash resources to manage short-term liquidity.
- The Company maintains strong access to the capital markets for long-term funding through an established Euro Medium Term Note (EMTN) programme and a SEC registered shelf programme.
- The Company also has access to Term Loans provided by the Group’s relationship banks. At 31 December 2023, $2bn of loans were outstanding in respect of funding the acquisition of Alexion Pharmaceutical, Inc..
- The Company has $6.9bn of revolving committed credit facilities provided by 13 relationship banks. These facilities were undrawn as at 31 December 2023. $2bn will mature in February 2025 and $4.9bn in April 2029.
- These different funding programmes ensure that the Company has sufficient flexibility when choosing the maturity, currency, interest rate (fixed/floating), and geographical mix of investors.
Programme | Last updated | Valid to | Limit | Rating (Moody's/ S&P) | Utilisation as at 31 December 2023 |
---|---|---|---|---|---|
US Commercial Paper |
N/A |
N/A |
USD 15bn |
A-1 / P-1 |
None |
Euro-Commercial Paper |
12 May 2020 |
N/A |
EUR 10bn |
Issuer rating |
None |
June 2023 |
June 2024 |
USD 10bn |
A2 / A |
USD 4.9bn |
|
SEC Shelf Registration Statement |
May 2021 |
May 2024 |
Unlimited |
A2 / A |
USD 20.1bn |
Debt maturity profile
AstraZeneca chooses to hold a significant cash balance to meet operational funding needs. Gross cash and investments position as at 31 December 2023 was $6bn
1 Notional bond values. FX converted at 31 December 2023 spot rates (USD/EUR 0.903; USD/GBP 0.784). Current portion of leases of $271m are included in 2024, whilst non-current Leases of $857m have been excluded from the chart.
Outstanding bonds
Below is a summary of the bonds issued or guaranteed by AstraZeneca PLC as at 27 February 2024, sorted by maturity date.
Issuer | Currency | Notional (m) | Issue date | Maturity date | Coupon | Frequency | ISIN | Note |
---|---|---|---|---|---|---|---|---|
AZ PLC |
EUR | 900 | 12-May-16 | 12-May-24 | 0.75% | Annual | XS1411404855 | 1 |
AZ Finance LLC |
USD | 1,600 | 28-May-21 | 28-May-24 | 0.70% | Semi-annual | US04636NAC74 | |
AZ PLC |
USD | 2,000 | 16-Nov-15 | 16-Nov-25 | 3.375% | Semi-annual | US046353AL27 | |
AZ PLC |
USD | 1,200 | 06-Aug-20 | 08-Apr-26 | 0.70% | Semi-annual | US046353AV09 | |
AZ Finance LLC |
USD | 1,250 | 28-May-21 | 28-May-26 | 1.20% | Semi-annual | US04636NAA19 | |
AZ Finance LLC |
USD | 1,250 | 26-Feb-24 | 26-Feb-27 | 4.80% | Semi-annual | US04636NAK90 | |
AZ PLC |
EUR | 750 | 03-Mar-23 | 03-Mar-27 | 3.625% | Annual | XS2593105393 | 2 |
AZ PLC |
USD | 750 | 12-Jun-17 | 12-Jun-27 | 3.125% | Semi-annual | US046353AN82 | |
AZ Finance LLC |
USD | 1,100 | 03-Mar-23 | 03-Mar-28 | 4.875% | Semi-annual | US04636NAF06 | |
AZ PLC |
EUR | 800 | 12-May-16 | 12-May-28 | 1.25% | Annual | XS1411404426 | 3 |
AZ Finance LLC |
USD | 1,250 | 28-May-21 | 28-May-28 | 1.75% | Semi-annual | US04636NAE31 | |
AZ PLC |
USD | 1,000 | 17-Aug-18 | 17-Jan-29 | 4.00% | Semi-annual | US046353AT52 | |
AZ Finance LLC |
USD | 1,250 | 26-Feb-24 | 26-Feb-29 | 4.85% | Semi-annual | US04636NAL73 | |
AZ PLC |
EUR | 800 | 03-Jun-21 | 03-Jun-29 | 0.375% | Annual | XS2347663507 | 4 |
AZ Finance LLC |
USD | 650 | 03-Mar-23 | 03-Mar-30 | 4.90% | Semi-annual | US04636NAG88 | |
AZ PLC |
USD | 1,300 | 06-Aug-20 | 06-Aug-30 | 1.375% | Semi-annual | US046353AW81 | |
AZ Finance LLC |
USD | 1,000 | 26-Feb-24 | 26-Feb-31 | 4.90% | Semi-annual | US04636NAM56 | |
AZ Finance LLC |
USD | 750 | 28-May-21 | 28-May-31 | 2.25% | Semi-annual | US04636NAB91 | |
AZ PLC |
GBP | 350 | 13-Nov-07 | 13-Nov-31 | 5.75% | Annual | XS0330497149 | 4 |
AZ PLC |
EUR | 750 | 03-Mar-23 | 03-Mar-32 | 3.75% | Annual | XS2593105476 | 5 |
AZ Finance LLC |
USD | 500 | 03-Mar-23 | 03-Mar-33 | 4.875% | Semi-annual | US04636NAH61 | |
AZ Finance LLC |
USD | 1,500 | 26-Feb-24 | 26-Feb-34 | 5.00% | Semi-annual | US04636NAN30 | |
AZ PLC |
USD | 2,750 | 12-Sep-07 | 15-Sep-37 | 6.45% | Semi-annual | US046353AD01 | |
AZ PLC |
USD | 1,000 | 18-Sep-12 | 18-Sep-42 | 4.00% | Semi-annual | US046353AG32 | |
AZ PLC |
USD | 1,000 | 16-Nov-15 | 16-Nov-45 | 4.375% | Semi-annual | US046353AM00 | |
AZ PLC |
USD | 750 | 17-Aug-18 | 17-Aug-48 | 4.375% | Semi-annual | US046353AU26 | |
AZ PLC |
USD | 500 | 06-Aug-20 | 06-Aug-50 | 2.125% | Semi-annual | US046353AX64 | |
AZ PLC |
USD | 750 | 25-May-21 | 28-May-51 | 3.00% | Semi-annual | US046353AZ13 |
1 Swapped to approximately USD 1,026m at approximately 2.67%, semi-annual payments
2 Swapped to approximately USD 791m at approximately 4.91%, semi-annual payments
3 Swapped to approximately USD 912m at approximately 3.06%, semi-annual payments
4 In a net investment hedge relationship. For more details, please refer to note 28 of our Annual Report and Form 20-F Information 2023.
5 Swapped to approximately USD 791m at approximately 4.83%, semi-annual payments
Credit ratings
AstraZeneca PLC aims to maintain a strong, investment grade credit rating. The Company has solicited credit ratings from Moody’s and S&P, which are assigned as:
Moody's |
S&P | |
---|---|---|
Short-term rating | P-1 | A-1 |
Long-term rating | A2 | A |
Outlook | Stable | Stable |
Key contacts at the respective agencies are:
Moody’s
Analyst: Martin Hallmark
Phone: +44 20 7772 1953
S&P
Analyst: Paulina Grabowiec
Phone: +44 20 7176 7051
Treasury risk management policies
The Company operates with a centralised Treasury structure so that key Treasury risks are managed at a Group level.
Liquidity Policy
- Prudent level of available cash and unutilised credit facilities
- Group funding centrally managed
Investment policy
- Security and liquidity
- Financial counterparty limits
Foreign Exchange Policy
- Foreign Exchange exposures managed centrally
- Transactional currency exposures substantially hedged
Interest Rate Policy
- Aim to broadly match level of floating rate debt to cash over time
- Significant portion of financial liabilities at fixed interest rates
Credit Risk
- Cash managed centrally
- Derivatives positions predominately cash collateralised
Debt IR presentations
2023
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2020
Press Releases
22 February 2024 – 07:00
1 March 2023 – 07:00
24 February 2023 – 18:15
2 June 2021 – 07:00
27 May 2021 – 07:00
26 May 2021 – 07:00
04 August 2020 - 07:00
FMSB Statement of Commitment
Contact Us
Christer Gruvris
Director of Investor Relations
Jonathan Slade
Group Treasurer
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