The Group’s net indebtedness is the balance between its financial debts and other financial instruments receivables, and cash and cash equivalents.

In € million

 

2016

 

2015

Financial debts

 

5,426

 

6,520

Other financial instrument receivables

 

(101)

 

(111)

Cash and cash equivalents

 

(969)

 

(2,030)

Net indebtedness

 

4,356

 

4,379

Solvay’s ratings by two rating agencies are: BBB-/A3 (stable outlook) at Standard and Poors, and Baa2/P2 (negative outlook) at Moody’s following the acquisition of Cytec.

Financial debt

In € million

 

2016

 

2015

 

 

Non Current

 

Current

 

Total

 

Non Current

 

Current

 

Total

Subordinated loans

 

0

 

0

 

0

 

500

 

0

 

500

Loans payables (incl Bonds)

 

3,837

 

1,087

 

4,924

 

4,837

 

308

 

5,145

Finance lease obligations

 

50

 

2

 

52

 

51

 

2

 

53

Currency swaps

 

0

 

59

 

59

 

0

 

4

 

4

Other depts (including overdrafts)

 

200

 

190

 

390

 

240

 

578

 

818

Total

 

4,088

 

1,338

 

5,426

 

5,629

 

891

 

6,520

Gross debt decreased from € 6,520 million at the end of 2015 to € 5,426 million at the end of 2016 following the repayment of the € 300 million loan to EIB, the € 500 million hybrid bond (first call repayment made on June 2, 2016) and no treasury notes outstanding at the end of 2016 (as against € 324 million at the end of 2015).

The current portion of the loan payables includes mainly the € 1 billion floating rate notes issued by Solvay SA in December 2015 and the US$ 82 million senior notes issued by Cytec Industries, which will be repaid respectively in December and July 2017.

Main borrowings and credit lines

In € million
(except where indicated)

 

 

 

2016

 

2015

 

Nomi­nal amount

 

Coupon

 

Maturity

 

Secured

 

Amount at amort­ized cost

 

Fair value

 

Amount at amor­tized cost

 

Fair value

(1)

Solvay has exercised its option to redeem this bond, which was repaid at par on June 2, 2016.

European Investment Bank

 

300

 

3.90%

 

2016

 

No

 

0

 

0

 

300

 

312

Deeply subordinated € debt

 

500(1)

 

6.375%

 

2016 (first call)

 

No

 

0

 

0

 

500

 

507

Floating rate € notes

 

1,000

 

Euribor 3m+82 bps

 

2017

 

No

 

998

 

1,005

 

995

 

1,004

Senior US$ note Cytec Industries Inc (US$ 82.2 m)

 

78

 

8.95%

 

2017

 

No

 

81

 

80

 

82

 

82

EMTN € bond

 

500

 

4.625%

 

2018

 

No

 

496

 

535

 

493

 

551

Senior US$ notes (144A;US$ 800 m)

 

759

 

3.40%

 

2020

 

No

 

756

 

774

 

731

 

730

Senior € notes

 

750

 

1.625%

 

2022

 

No

 

742

 

786

 

741

 

751

Senior US$ note Cytec Industries Inc (US$ 400 m)

 

380

 

3.5%

 

2023

 

No

 

362

 

369

 

347

 

347

Senior US$ note Cytec Industries Inc (US$ 250 m)

 

237

 

3.95%

 

2025

 

No

 

233

 

232

 

224

 

224

Senior US$ notes (144A;US$ 800 m)

 

759

 

4.45%

 

2025

 

No

 

755

 

785

 

730

 

730

Senior € notes

 

500

 

2.75%

 

2027

 

No

 

495

 

559

 

494

 

505

Total

 

 

 

 

 

 

 

 

 

4,916

 

5,126

 

5,637

 

5,743

There are no instances of default on the above-mentioned financial debts. There are no financial covenants, either on Solvay SA, or on any of the Group’s holding companies.

Other financial instrument receivables and cash and cash equivalents

The total cash available, cumulating the “Other financial instrument receivables” and “Cash and cash equivalents”, amounts to € 1,070 million at the end of 2016 as against € 2,141 million at the end of 2015.

In 2015, the cash also includes the extra financing issued in December 2015 for the early refinancing of existing short-term and long-term financial debts maturing in 2016 (resulting in an increase in cash and cash equivalents approximating to € 900 million) as well as the cash of Cytec (€ 198 million).

As mentioned, Solvay used part of these available funds to repay the € 300 million loan to EIB in January 2016 and the € 500 million hybrid bond in June 2016, as well as the € 324 million treasury notes outstanding at the end of 2015.

Other financial instrument receivables

In € million

 

2016

 

2015

Currency swaps

 

12

 

49

Other marketable securities > 3 months

 

32

 

21

Other current financial assets

 

57

 

41

Other financial instrument receivables

 

101

 

111

The “Other financial instruments receivables” amount to € 101 million at the end of 2016 as against € 111 million at the end of 2015. They include currency swaps, other marketable securities > 3 months (Chinese bank drafts), and other current financial assets (mainly margin calls of Solvay Energy Services).

Cash and cash equivalents

In € million

 

2016

 

2015

Cash

 

773

 

1,214

Term deposits

 

195

 

815

Others

 

2

 

0

Cash and cash equivalents

 

969

 

2,030

By their nature, the carrying amount of cash and cash equivalents is equal or very close to their fair values.