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

negative

10 May 2021

Moody's

P-1

A2

negative

28 May 2021

Fitch Ratings (unsolicited)

F1

BBB+

stable

19 October 2021

 

Rating History

Airbus 9m21 Rating Evolution

Hedging

 

Airbus’ currency hedge policy

More than half 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 9m21 Hedge Policy

Approximately 60% of Airbus US$ revenues are naturally hedged by US$ procurement. Graph shows US$ Forward Sales  

Hedge rates reflect EBIT impact of the US$ hedge portfolio

Total hedge amount contains $/€ and $/£ 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

H121-Debt-Profile-Portfolio

Debt breakdown and maturities are updated once per year at publication of full-year results. 

H121-Debt-Profile-Portfolio

Funding Tools

 

Short-term funding
 

French Domestic Commercial Paper Programme (Billet de Trésorerie)
Amount Outstanding Issuer Dealer Status
€ 11 bn - Airbus Finance B.V. (guaranteed by Airbus SE) BNP Paribas, CIC, CA-CIB, HSBC, ING, Natixis, Société Générale 31 December 2020

 

Euro Commercial Paper Programme
Amount Outstanding Issuer Dealer Status
€ 4 bn - Airbus SE BNP Paribas, Commerzbank, HSBC, Lloyds, NatWest Markets 31 December 2020

 

US Commercial Paper Programme
Amount  Outstanding Issuer Dealer Status
$ 3 bn - Airbus Finance B.V. (guaranteed by Airbus SE) Bank of America Merill Lynch, Citigroup, GoldmanSachs, JP Morgan, RBC 31 December 2020

 

Further information

Long-term funding
 

EMTN Programme
Amount Outstanding Issuer Arranger Status
€ 12 bn € 9 bn Airbus Finance B.V.
(guaranteed by Airbus SE) /  Airbus SE
Barclays 31 December 2020

 

removeCollapse AlladdUnfold All

AmountISINMaturityTenorCouponIssuerBookrunners
€1 bnXS105084650702 April 202410 yrs.2.375%Airbus Finance B.V. (guaranteed by Airbus SE)BNP Paribas, Deutsche Bank, HSBC, Société Générale
€ 500 mXS112822470329 October 202915 yrs.2.125%Airbus Finance B.V. (guaranteed by Airbus SE)Barlclays, CA-CIB, Santander, Unicredit
€ 1.5 bn split in € 600 m and € 900 mXS1410582586 / XS141058231313 May 2026 / 13 May 203110 yrs. / 15 yrs.0.875% / 1.375%Airbus Finance B.V. (guaranteed by Airbus SE)BNP Paribas, CA-CIB, Deutsche Bank, MUFG
€2.5 bn split in €750 m,  €750 m and €1 bnXS2152795709 / XS2152796269 / XS21527964267 April 2025 / 7 April 2028 / 7 April 20325 yrs. / 8 yrs. / 12 yrs.1.625% / 2.000% / 2.375%Airbus SEBNP Paribas / CACIB / HSBC / JP Morgan / Société Générale
€3.5 bn split in €1.25 bn, €1.25 bn and €1 bnXS2185867830 / XS2185867913 / XS21858680519 June 2026 / 9 June 2030 / 9 June 20406 yrs. / 10 yrs. / 20 yrs.1.375% / 1.625% / 2.375%Airbus SEBNP Paribas / CA-CIB / HSBC / JP Morgan / Société Générale

 

Further information
USD Bond (144A / RegS)
Amount  ISIN Maturity Tenor Coupon Issuer Bookrunners
$ 1 bn USN2823BBD21 17 April 2023 10 yrs. 2.70% Airbus Finance B.V.
(guaranteed by Airbus SE)
JPMorgan, Citigroup, Barclays, Morgan Stanley, RBS
$ 1.5 bn split in
$ 750 m and
$ 750 m
US26824KAA25 /
US009279AC43
10 April 2027 /
10 April 2047
10 yrs. /
30 yrs.
3.15% /
3.95%
Airbus SE JPMorgan, Citigroup, GoldmanSachs, Morgan Stanley

 

Convertible bond
€ 500 m XS1254584599 01 July 2022
Converted into shares per 31 December 2019
7 yrs. 0% Airbus SE Société Générale, HSBC, BNP Paribas

 

Exchangeable bond
Amount  ISIN Maturity Tenor Coupon Issuer Bookrunners
€ 1078 m XS1434160971 14 June 2021 5 yrs. 0% Airbus SE GoldmanSachs, Bank of America Merill Lynch, BNP Paribas, Deutsche Bank, JPMorgan

Committed Credit Facility

 

Sustainability-linked Revolving Syndicated Credit Facility
Credit line Outstanding Maturity Borrower Lenders
€ 6 bn undrawn  21 October 2023 Airbus SE Pool of 33 banks
3-tier structure

 

 

Airbus Finance B.V.


Airbus Finance B.V. (previously Airbus Group Finance B.V.), an Airbus subsidiary, the activity of which is to raise funds by issuance of debt securities to finance activities of Airbus, releases its financial statements for the year end and half-year frequently. These announcements are made to comply with the requirements of the EU Transparency Directive.

In addition to historical information, this website includes forward-looking statements. For further information, please refer to the Safe Harbour Statement.

Past financial statements

Share Price & Information

Financial Results

And Annual Reports

Annual General Meetings