Airbus Financing Strategy

 

1. Maintain liquidity and flexibility

  • Sufficient level of gross cash at all times in order to manage operational risks and secure our investment into the future

  • Committed credit lines

  • Short and long-term programmes are in place

2. Diversify funding sources and maturities

  • Banks: Revolving Credit Facility and Supplemental liquidity line

  • Capital markets: in the short term with the French and US Commercial Paper programmes and in the medium and long term with our Euro Medium-Term Note programme, as well as access to the US Debt Capital Market

  • Supranationals: European Investment Bank loan, Development Bank of Japan

3. Anticipate business needs

  • Long-term debt instruments to match assets or businesses of long-term nature

  • Strict control of customer financing

  • Pro-active long-term hedging policy

4. Maintain ratings in the single-A category in medium term

  • Solid balance sheet

  • Efficient presence of Airbus in Debt Capital Markets

Credit Ratings

 

Rating
 

To assist debt and fixed income investors to better evaluate the risk of any given investment, the capital market uses the publicly available independent assessments of rating agencies. Through regular discussions with the senior management of companies, rating agencies gain an insight into the strategy and planning of the companies that they rate. Using this information as a base, supplemented by quantitative analysis, rating agencies evaluate the creditworthiness of the issuer companies through a system of rating classifications. Companies which want to raise money in the capital markets in the form of bonds, commercial paper and other debt instruments normally need a minimum of one or, better, two ratings.

The leading international rating agencies are Standard & Poor's, Moody's Investors Service and Fitch Ratings.

The higher the rating classification is, the smaller is the potential risk that a company cannot meet its debt obligations (interest and principal). The debt investors charge a higher rate of interest for financing a higher risk investment. Thus a company with a strong rating can raise capital more advantageously than a company which has a less favourable rating. Additionally, the outlook given by a rating agency provides a supplementary reference point for the investor in assessing the probable development of the rating.


 

Current Ratings
 

Rating Agency

Short Term

Long Term

Outlook

Last Update

Standard & Poor's

A-1

A

Stable

30 March 2022

Moody's

P-1

A2

Stable

28 February 2022

Fitch Ratings (unsolicited)

F1

BBB+

Stable

24 November 2021

 

Rating History

FY 2021 Credit rating evolution

FY 2021 Credit rating evolution

USD Exposure Coverage

 

Airbus’ currency hedge policy

In 2021, more than 70% of Airbus' revenues are denominated in US dollars with approximately 60% of such currency exposure 'naturally hedged' by US dollar-denominated costs. The remainder of costs is incurred primarily in euro, and to a lesser extent, in pounds sterling.

As Airbus intends to generate profits only from its operations and not through speculation on foreign currency exchange rate movements, Airbus uses hedging strategies solely to manage and minimise the impact on its EBIT from the volatility of the US dollar.

Airbus manages a long-term hedge portfolio with a maturity of several years covering its net exposure to US dollar sales, mainly from the activities of Airbus Commercial Aircraft and, to a lesser extent, of the Airbus Helicopters and Airbus Defence and Space Divisions. The net exposure is defined as the total firm audited currency exposure (US dollar-denominated revenues), net of the part that is 'naturally hedged' by US dollar-denominated costs. The hedge portfolio covers nearly all of the Airbus hedging transactions.

In parallel, Airbus is proactively increasing the number of euro deals wherever suitable.

The tables below set forth the notional amount of foreign exchange hedges in place and the US dollar rates applicable to corresponding EBIT.

Airbus H1 2022 Hedging

Airbus H1 2022 Hedging

Approximately 60% of Airbus US$ revenues are naturally hedged by US$ procurement. Hedge rates reflect EBIT impact of the US$ hedge portfolio.
Total hedge amount predominantly contains €/$ designated hedges. 

FX Global Code

The FX Global Code is a voluntary code of conduct having been developed in a joint effort between major central banks and private sector market participants (one of them being Airbus) on a global scale in order to restore trust and to ensure integrity, fairness, liquidity, transparency and effective functioning of the foreign exchange market. Due to its business model and in order to protect its activities from currency fluctuations, Airbus maintains a significant portfolio of foreign exchange hedges. Airbus is therefore committed to the FX Global Code and has already previously been acting in accordance with its leading principles and will continue to do so.

Airbus sees adherence to the code as a way to demonstrate towards its stakeholders compliant behaviours in the context of a wider ethics and compliance framework.

Read more on the Global Foreign Exchange Committee website.

Debt Profile & Portfolio

Airbus H1 2022 Debt profile

Airbus H1 2022 Debt profile

Debt breakdown and maturities are updated twice per year at publication of full-year results and half-year results. Information disclosed for half-year are estimations only (except for bonds / commercial paper).

Airbus H1 2022 Debt portfolio

Airbus H1 2022 Debt portfolio

Funding Tools

 

Short-term funding
 

French Domestic Commercial Paper Programme (NEU CP)
Amount Outstanding Issuer Dealer Status
€ 11 bn - Airbus SE Société Générale 31 Dec. 2021

 

Euro Commercial Paper Programme
Amount Outstanding Issuer Dealer Status
€ 4 bn - Airbus SE BNP Paribas, Commerzbank, HSBC, Lloyds, NatWest Markets 31 Dec. 2021

 

US Commercial Paper Programme
Amount  Outstanding Issuer Dealer Status
$ 3 bn - Airbus SE

Bank of America Merill Lynch, Citigroup, GoldmanSachs,

JP Morgan, RBC, MUFG

31 Dec. 2021

 

Further information

Long-term funding
 

EMTN Programme
Amount Outstanding Issuer Arranger Status
€ 12 bn € 8 bn  Airbus SE Barclays 31 Dec. 2021

 

EMTN Bonds
Issue Date Amount ISIN Maturity Tenor Coupon Issuer Active Bookrunners
2 Apr. 2014 €823,004,000 XS1050846507 2 Apr. 2024 10 yrs. 2.375% Airbus SE BNP Paribas, Deutsche Bank, HSBC, Société Générale
29 Oct. 2014 € 500m XS1128224703 29 Oct. 2029 15 yrs. 2.125% Airbus SE Barlclays, CA-CIB, Santander, Unicredit
13 May 2016

€ 460,554,000

€ 900 m

XS1410582586

XS1410582313

13 May 2026

13 May 2031

10 yrs.

 15 yrs.

0.875% 

1.375%

Airbus SE BNP Paribas, CA-CIB, Deutsche Bank, MUFG
31 Mar. 2020

€561,243,000 

€610,828,000

€1 bn

XS2152795709

XS2152796269

XS2152796426

7 Apr. 2025

7 Apr. 2028

7 Apr. 2032

5 yrs.

8 yrs.

12 yrs.

1.625%

2.000% 

2.375%

Airbus SE BNP Paribas / CACIB / HSBC / JP Morgan / Société Générale
2 Jun. 2020

€894,371,000

€1.25 bn

€1 bn

XS2185867830

XS2185867913

XS2185868051

9 Jun. 2026

9 Jun. 2030

9 Jun. 2040

6 yrs.

10 yrs.

 20 yrs.

1.375%

1.625%

2.375%

Airbus SE BNP Paribas / CA-CIB / HSBC / JP Morgan / Société Générale
USD Bond (144A / RegS)
Issue Date Amount  ISIN Maturity Tenor Coupon Issuer Active Bookrunners
10 Apr. 2017

$ 750 m

$ 750 m

US26824KAA25

US009279AC43

10 Apr. 2027

10 Apr. 2047

10 yrs.

30 yrs.

3.15%

3.95%

Airbus SE JPMorgan, Citigroup, GoldmanSachs, Morgan Stanley

Committed Credit Facility

 

Sustainability-linked Revolving Syndicated Credit Facility
Credit line Outstanding Maturity Borrower Lenders
€ 8 bn undrawn  05 July. 2027 Airbus SE Pool of 38 banks
3-tier structure

Airbus Finance B.V.

Airbus Finance B.V. was merged into Airbus SE on 31 December 2021. With effect on and from that date, Airbus SE was substituted in place of Airbus Finance B.V. as issuer and principal debtor of the 2024 Notes, 2029 Notes and 2031 Notes (please refer to the Announcement of Substitution).

Airbus Finance BV - Annual Financial Report - 2020

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Airbus Finance BV - Annual Financial Report - 2020