Debt & credit

Sources of external funding

Debt and credit rating overview

As a basis for and contribution to effective risk management and to ensure that the company will be able to pursue its strategies even during periods of economic downturn, Koninklijke DSM N.V. retains a solid financial policy.

Most of DSM's external funding needs are financed through long-term debt. Debt covenants are not included in the terms and conditions of outstanding bonds and financing arrangements. DSM aims to spread the maturity profile of outstanding bonds in order to have adequate financial flexibility. The weighted average interest rate of the bonds (including derivatives) was 2.24% in 2018 (3.28% in 2017).

DSM also has a commercial paper program and a committed credit facility maturing in May 2023.

Credit rating

Royal DSM aims to maintain a strong investment grade long-term credit rating for senior unsecured debt.

To this end, regular review meetings between rating agencies and DSM senior management take place. The rating agencies Moody’s and Standard & Poors have awarded the following ratings for the company’s long- and short-term debt.

Agency Long/short-term rating Outlook Last Updated
Moody's A3/P-2 Stable 31 Jul 2018
Standard & Poor's A-/A-2 Stable 29 Mar 2018

Debt maturity profile at 31 Dec 2018

Due date Amount in € mln
13 Nov 2019 300
26 Sep 2022 500
03 Apr 2024 500
09 Apr 2025 500
28 Sep 2026 750

Bond details

Rate, Currency & Period 1.75%, €, 2013 - 2019
Issuer Koninklijke DSM N.V.
Rating Moody's: A3, Standard & Poor's: A-
Listing NL
ISIN Code XS0993228294
Volume €300 million
Issue price 99.96%
Coupon 1.75%
Term 6 years
Redeemed in full early 13 August 2019
Rate, Currency & Period 2.375%, €, 2014 - 2024
Issuer Koninklijke DSM N.V.
Rating Moody's: A3, Standard & Poor's: A-
Listing NL
ISIN Code XS1041772986
Volume €500 million
Issue price 99.56%
Coupon 2.38%
Term 10 years + 1 month
Maturity 03 Apr 2024
Rate, Currency & Period 1.375%, €, 2015 - 2022
Issuer Koninklijke DSM N.V.
Rating Moody's: A3, Standard & Poor's: A-
Listing NL
ISIN Code XS1293087703
Volume €500 million
Issue price 99.84%
Coupon 1.38%
Term 7 years 
Maturity 26 Sep 2022
Rate, Currency & Period 1.00%, €, 2015 - 2025
Issuer Koninklijke DSM N.V.
Rating Moody's: A3, Standard & Poor's: A-
Listing NL
ISIN Code XS1215181980
Volume €500 million
Issue price 99.41%
Coupon 1.00%
Term 10 years 
Maturity 09 Apr 2025
Rate, Currency & Period 0.75%, €, 2016 - 2026
Issuer Koninklijke DSM N.V.
Rating Moody's: A3, Standard & Poor's: A-
Listing NL
ISIN Code XS149537350
Volume €750 million
Issue price 99.799%
Coupon 0.75%
Term 10 years 
Maturity 28 Sep 2026

Committed credit facility

DSM holds a €1.0 billion revolving committed facility (RCF), which serves as back-up funding. The interest rate of this RCF is linked to DSM's Greenhouse Gas (GHG) emission reductions.

Borrower Koninklijke DSM N.V.
Senior unsecured long-term rating Moody's: A3, Standard & Poor's: A-
Facility amount €1,000 million
Maturity 29 May 2024 (1st extension option executed, 2nd extension option due Q1 2020).
Purpose General
Financial covenants None
MAC clause None

Liabilities structure as at 31 Dec 2018

Borrowings amount in € millon 2017 total 2017 current 2018 total 2018 current
Debenture loans 2,542 - 2,543 300
Private loans 16 7 13 8
Finance lease liabilities 21 1 4 -
Credit institutions/commercial paper 72 72 69 69
Total 2,651 80 2,629 377

€5 billion debt issuance program

Royal DSM's €5 billion Debt Issuance Program is a framework with standard terms & conditions, which are applicable if Notes are issued. Additionally, the Debt Issuance Program includes risk factors, company description, financial information and the form of final terms of various kinds of debt. These terms & conditions, form of final terms, risk factors and financial information on Royal DSM are laid down in the Base Prospectus.

The Dutch Authority for the Financial Markets (AFM), which is responsible for supervising the operation of the financial markets approved the Prospectus on 28 November 2018. This approval is valid for 1 year.

Legal disclaimer
This website contains information and documents which are for information purposes only. They neither constitute an offer nor an invitation nor a recommendation to subscribe to or to purchase, to hold or sell securities, nor are the information or documents contained on this website meant to serve as a basis for any kind of obligation, contractual or otherwise.

Publication of prospectuses on this website is done in accordance with legal requirements in connection with the admission to trading of securities.

Distribution of information and documents contained on this website, especially prospectuses, may be forbidden or limited by legislation of some jurisdictions.

Access is denied to persons to whom these restrictions in such jurisdictions apply. Each visitor to this website is required to inform himself accordingly and to comply with applicable restrictions. Koninklijke DSM N.V. is in no way liable for any such infringement.

THE INFORMATION AND DOCUMENTS CONTAINED ON THIS WEBSITE ARE NOT DIRECTED AT AND MAY NOT BE VIEWED BY OR DISTRIBUTED TO ANY PERSON RESIDENT IN THE UNITED STATES OF AMERICA.

By entering the following parts of this website you confirm that you are not a resident of the United States of America and that you will not distribute any of the information and documents contained thereon to any person resident in the United States of America.

You further acknowledge that the following information and documents neither constitute an offer nor an invitation nor a recommendation to subscribe to or to purchase, to hold or sell securities.

€1.5 billion commercial paper program

The Euro Commercial Paper Program of Royal DSM is a framework with standard terms & conditions, which are applicable if Notes are issued. The Euro Commercial Paper Program is not quoted on a Stock Exchange. The terms & conditions of this program are laid down in the Prospectus.

Issuer Koninklijke DSM N.V.
Short term rating Moody's: P-2, Standard & Poor's: A-2
Date of implementation 13 Sep 2011
Maximum Volume €1,500,000,000
Tenor Between 1 and 364 days
Minimum denomination €100,000 or £100,000
Clearing agent Euroclear & Clearstream
Dealers Citibank International, Royal Bank of Scotland, Deutsche Bank, BNP Paribas Fortis, ING Bank and RABO Bank.
Issuing & Paying agent Citibank, London

Legal disclaimer
This website contains information and documents which are for information purposes only. They neither constitute an offer nor an invitation nor a recommendation to subscribe to or to purchase, to hold or sell securities, nor are the information or documents contained on this website meant to serve as a basis for any kind of obligation, contractual or otherwise.

Publication of prospectuses on this website is done in accordance with legal requirements in connection with the admission to trading of securities.

Distribution of information and documents contained on this website, especially prospectuses, may be forbidden or limited by legislation of some jurisdictions.

Access is denied to persons to whom these restrictions in such jurisdictions apply. Each visitor to this website is required to inform himself accordingly and to comply with applicable restrictions. Koninklijke DSM N.V. is in no way liable for any such infringement.

THE INFORMATION AND DOCUMENTS CONTAINED ON THIS WEBSITE ARE NOT DIRECTED AT AND MAY NOT BE VIEWED BY OR DISTRIBUTED TO ANY PERSON RESIDENT IN THE UNITED STATES OF AMERICA.

By entering the following parts of this website you confirm that you are not a resident of the United States of America and that you will not distribute any of the information and documents contained thereon to any person resident in the United States of America.

You further acknowledge that the following information and documents neither constitute an offer nor an invitation nor a recommendation to subscribe to or to purchase, to hold or sell securities.

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