Rigorous discipline in order to optimize the cost of debt

Our financial strategy aims to maintain rigorous financial discipline, in line with the investment grade profile, in order to limit the exposure to financial risks (interest rate and credit) and obtain the best market terms and conditions possible.

The main golas are to further reduce the Loan to Value, improve our liquidity profile in order to meet short-term needs, maintain a balance between bank and market debt in order to further reduce the average cost of debt and allocate maturities effectively over the medium term.

Financial solidity and prudent management are part of the IGD Group’s DNA.

 

Results achieved in 2020

In 2020, given the  the Company worked, above all, on guaranteeing the sustainability of its financial structure and on having the resources needed to cover the financial needs for 2021.

Toward this end, in the first half €60 million in committed credit lines were renewed; an agreement was also signed with Banca Monte dei Paschi di Siena for a 6-year €36.3 million loan, guaranteed by SACE as part of the Garanzia Italia program (at a rate which, including the cost of the government guarantee, is in line with the Group’s average cost of debt).

With regard to IGD’s ratings, following the global epidemiologic emergency from COVID-19, based on their estimates as to the impact that this extraordinary situation will have, during the year all the rating agencies revised their opinions on IGD: S&P Global Ratings downgraded IGD’s rating from BBB- to BB+ with a negative outlook, while Fitch Ratings Fitch Ratings Ltd confirmed the investment grade rating of BBB- and changed the outlook to negative.  As a result of this confirmation, the economic conditions of the bond loans remain unchanged.

Average cost of debt

the average cost of debt stood at 2.30%, compared to 2.35% recorded in 2019;

Interest cover ratio

the Interest Cover Ratio went from 3.8x at year-end 2019 to 3.2x at 31 December 2020.

Average cost of debt (in %)

Interest Cover Ratio