We employ a balanced mix of equity and debt to optimize the average cost of capital. We ensure financial flexibility by using a broad spectrum of financing instruments. Our financing profile is characterized by a wide spread of maturities up to 2032.
Sufficient financial cushion is assured for the Fresenius Group by unused syndicated and bilateral credit lines. In addition, Fresenius SE & Co. KGaA and Fresenius Medical Care AG & Co. KGaA maintain commercial paper programs. The Fresenius Medical Care receivable securitization program offers additional financing options.
In present capital market conditions we optimize our cost of capital if we hold the net debt/EBITDA ratio within a range of 2.5 to 3.0.
Pro forma the acquisitions of Akorn, Inc. and Fresenius Kabi’s biosimilars business, the net debt/EBITDA ratio is expected to be approximately 3.3 at the end of 2017 (calculated at expected annual average exchange rates for both net debt and EBITDA; before acquisition-related expenses of ~€50 million; excluding further potential acquisitions).
In line with the Group’s structure, financing for Fresenius Medical Care and for the rest of the Fresenius Group is conducted separately. There are no joint financing facilities and no mutual guarantees.