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 3.0 to 3.5x (after adoption of IFRS 16). As of March 31, 2020, the net debt/EBITDA ratio was 3.68x1,2 (December 31, 2019: 2.611,2). Fresenius expects year-end 2020 net debt/EBITDA ratio3 excluding effects of the COVID-19 pandemic to be around the upper-end of the self-imposed target corridor of 3.0 to 3.5x.
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.
1 At LTM average exchange rates for both net debt and EBITDA, pro forma closed acquisitions/divestitures
2 Before special items
3 Both net debt and EBITDA calculated at expected annual average exchange rates; excluding further potential acquisitions