Financing Strategy

Our financing strategy pursues various goals: a balanced structure and maturity of our debt capital, optimisation of our financing costs, maintenance of our credit rating and adequate liquidity at all times.

The success of our financing strategy is reflected in the following:

  • Access to the capital markets through our IPO in 2013 on the basis of a sound equity ratio and a loan-to-value ratio of sustainably low to mid 40%
  • Access to the debt capital markets through an investment grade rating of “BBB+” from Standard & Poor’s (S&P)Balanced and weighted maturity profile

    – Balanced debt structure through different unsecured corporate bonds, supplemented by hybrid instruments, securitisations and structured loans as well as low-interest mortgages
    – Synchronised hedging strategy for exchange rate and interest rate risks

  • Possibilities to obtain a balanced mix of equity and debt capital
    – Enables further internal and external growth
    – Ensures improved financial result
    – Ensures earnings growth and investor returns through dividends and share price

The flexibility and variety in financing achieved by the implementation of Vonovia ’s financial strategy will allow the business to achieve organic growth and to be further developed in an innovative manner using acquisitions in the future as well.

The responsibility for financing the Group as a whole and the Group companies individually lies with Vonovia . The latter raises the funds required, in line with the financing strategy, in a flexible manner on the international equity and debt capital markets. Within this context, Vonovia mainly makes use of its Dutch subsidiary Vonovia Finance B.V.

On the basis of the current investment grade rating granted by Standard & Poor’s, Vonovia now enjoys access to the equity and debt capital markets at all times, allowing it to ensure balanced and flexible financing with a balanced maturity profile in line with its financing strategy.

The financing structure that we have chosen is also confirmed to be the right one if we look at the acquisitions that were announced and completed since 2013. Without fast and free access to the international equity and debt capital markets, these would not be shown.