Debt Investors

Debt investors

Funding strategy

The Group’s funding strategy in the debt capital markets is built around the following   principles:

  • Raise financing via a wholly owned Dutch financing subsidiary, Coca‑Cola HBC Finance B.V.
  • Maintain a well-balanced debt redemption profile 
  • Improve funding costs of the Group

Funding sources

Our funding sources comprise of (i) Bonds issued through our Euro Medium Term Note (EMTN) Programme  (ii) Commercial paper issued through our Euro-Commercial Paper Programme (ii) a sustainability linked committed Revolving Credit Facility (iii) bilateral facilities set up with relationship banks

Debt maturity profile

This chart sets out the maturity profile of Coca‑Cola HBC’s long-term debt as of 28 February 2024.

Debt-maturity-profile-image Debt-maturity-profile-image

EMTN programme

The EMTN programme was last updated in December 2023.

Outstanding bonds
  • €600 million 1.875% 2024 bond    ISIN: XS1377682676
  • €500 million 2.750% 2025 green bond    ISIN: XS2533012790
  • €700 million 1.000% 2027 bond    ISIN: XS1995781546
  • €600 million 3.375% 2028 bond    ISIN: XS2757515882
  • €500 million 0.625% 2029 bond   ISIN: XS2082345955
  • €600 million 1.625% 2031 bond    ISIN: XS1995795504
Commercial paper programme

We have had an active €1bn Commercial Paper programme since March 2002, which we have been using to further diversify our short-term funding sources.

The Euro Commercial Paper programme was last updated in May 2023. 

Revolving credit facility

We have €800m Syndicated Multi-Currency Revolving Credit Facility in place that includes sustainability features. The Facility can be used for general corporate purposes.

The Facility is set to mature in April 2026. 

EMTN Prospectus documents

Sustainable finance

Our sustainable finance approach aligns our funding strategy with our sustainability commitments and creates opportunities for fixed income investors to contribute into our sustainability agenda. We support the UN Sustainable Development Goals and EU Environmental Objectives - among other relevant initiatives – by financing green projects that create value for all stakeholders and future generations.

We started in 2019 by establishing sustainability linked committed Revolving Credit Facility. In 2022, the Green Finance Framework was the next step before we issued our inaugural green bond for €500 million in September 2022 (2.75% coupon, maturity September 2025). In September 2023, we published our first Green Finance Report, detailing the use of proceeds and environmental impact of the green bond.

Financial risk management 

Financial risk management framework is built to address the main financial risks faced by the Group: foreign exchange, interest rate, commodity price, credit and liquidity risk.

The overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise volatility and its potential adverse effects on the Group’s financial performance.

We regularly use derivative products like forwards, options and futures but these are solely used for the purpose of hedging underlying exposures to foreign currency exchange rate risk, interest rate risk and commodities’ pricing volatility. None of these financial instruments are used for trading purposes or taken as speculative positions.

Further information about Coca Cola HBC's risk management can be found in our most recent Integrated Annual Report.

Given the Group’s operating activities, we are exposed to foreign currency risk. Our foreign currency exposures arise from adverse changes in exchange rates between the Euro, the US dollar and the currencies in our non-euro countries. Transactional exposures arise mainly from raw materials purchased in currencies other than the functional currency of the country, which can lead to higher cost of sales in that functional currency.

Translational exposures arise as many of our operations have functional currencies other than the Euro, and any change in the functional currency against the Euro impacts our consolidated income statement and balance sheet when results are translated into Euros.

Our treasury policy requires the hedging of rolling 12-month forecasted transactional exposures within defined minimum (25%) and maximum (80%) coverage levels. Where available, we use derivative financial instruments to reduce our net exposure to currency fluctuations.

The Group is exposed to market risk arising from changing interest rates, primarily in the Euro zone. Periodically we evaluate the desired mixture of fixed and floating rate liabilities and modify the interest payments based on the desired mixture of debt. We also use interest rate derivatives to manage our interest rate cost.

The Group is exposed to market risks arising from the fluctuations in the prices of key raw materials. For a number of raw materials, where there are available tools to actively manage price risks, the relevant provisions are included in the Treasury Policy. Treasury and Procurement Departments are jointly responsible for applying the relevant policies.

Based on the Treasury Policy, hedging activities are conducted for a 36  month rolling horizon. Treasury Policy dictates minimum and maximum coverage levels per time bucket, with a ‘layered approach’ (gradually lower hedge percentage for longer tenors) being applied. Different minimum and maximum hedge levels are applicable for each underlying commodity. Hedging activities are conducted through financial derivatives – where available – or through relevant provisions in the physical supply contracts.

Credit risk is controlled by a restrictive policy as to the choice of potential counterparties for treasury transactions. Our credit risk is managed by establishing approved counterparty and country limits, detailing the maximum exposure that we are prepared to accept with respect to individual counterparties or countries. The limits are reviewed and monitored on a regular basis.

Our general policy is to retain a minimum amount of liquidity reserves in the form of cash on our balance sheet if and when required, while having an access to Group’s committed facilities, to ensure that we have cost-effective access to sufficient financial resources to meet our funding requirements. These include the day-to-day funding of our operations as well as the financing of our capital expenditure program.

In order to mitigate the possibility of liquidity constraints, we endeavor to maintain a minimum of €250 million of financial headroom. Financial headroom is defined as cash plus committed funding facilities less any short-term borrowings and forecasted cashflow requirements.

The Group maintains credit ratings with both Standard & Poor‘s and Moody‘s Investors Service.

  Moody's Investors Service Standard & Poor's Rating Service
Long term credit rating Baa1 BBB+
Outlook Stable Stable
Senior Unsecured Debt Baa1 BBB+
Short term credit P2 A2
Latest rating action Download Moody's latest credit report Download S&P's latest credit report