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Financial strategy

Secure profitability, solid investment grade ratings, increasing group value

Financial management

Foundations

  • Management of financial transactions within the Group finance department in order to minimise risk, optimise costs and increase transparency
  • Deployment of derivates in the operating business generally for hedging purposes only: for example, for forward contracts for electricity and primary energy source trading
  • Interest rate risk management for managing and monitoring interest-sensitive assets and liabilities / Interest rate risk strategy to limit the risk of interest rate changes for the Group
  • Currency management system to monitor foreign exchange risks

Objectives

  • Payment obligations can be fulfilled without restriction
  • Balanced financing structure
  • Solid balance sheet ratios
  • Solid investment grade ratings
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Positive creditworthiness of high importance

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Key performance indicator for creditworthiness management

2021 to 2025: Debt repayment potential¹

0 %

Controlled growth during the further development into an infrastructure partner

Retained Cashflow / Net debt

¹ To maintain solid investment-grade ratings, EnBW regularly checks the 2025 target value for the debt repayment potential for managing its financial profile.

Financing strategy

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Financing instruments as of 30.09.2023

Programme
Value0Rounded figures
Programme
Value0Rounded figures
€10.0 bn, thereof €6.8 bn utilized
Programme
CHF bonds0CHF 410 m, converted as of the reporting date of 30 September 2023
Value0Rounded figures
€0.4 bn
Programme
US private Placement0Issued 9 November 2022; €860.95 m equivalent (€400 m, US$270 m, £168 m, converted as of the reference date of 9 November 2022)
Value0Rounded figures
€0.9 bn
Programme
Subordinated bonds
Value0Rounded figures
€2.5 bn
Programme
Value0Rounded figures
€2.0 bn, undrawn
Programme
Promissory notes
Value0Rounded figures
€0.5 bn
Programme
Sustainable syndicated creditline
Value0Rounded figures
€1.5 bn, undrawn; maturity date: 20270Term until the end of June 2027 after exercise of the second extension option for a further year
Programme
Commited bilateral credit lines
Value0Rounded figures
€3.6 bn, thereof €0.3 bn utilized
Programme
Uncommited bilateral credit lines
Value0Rounded figures
€1.5 bn, undrawn
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Overview of EnBW’s bonds

Maturities of EnBW’s bonds

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Corporate strategy

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Sustainable infrastructure partner

Total investments 2023-2025

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Climate neutrality by 2035

2020-2030 2030-2035 Ab 2035
Phase-out of coal/fuel switch:

We intend to fully phase out coal-fired power generation by 2028. Some of our power plants will be switched over initially to natural gas and then to green gases – especially hydrogen – from the middle of the 2030s. As a result of this fuel switch from coal to natural gas at our power plants, we will be able to reduce specific carbon emissions by up to 60 percent and guarantee the security of the electricity and district heating supplies. In addition, these fuel switch projects will contribute significantly to preserving existing power plant sites and associated jobs.

Climate-neutral gases and hydrogen:

While we are initially planning a fuel switch to more climate-friendly gas, we then aim to switch over in a second stage to climate-neutral gases such as biogas or hydrogen. We anticipate that the switch to these climate-neutral gases will be possible by the middle of the 2030s as they become widely available.

Using green electricity:

Using green electricity will be especially relevant for offsetting the line losses in Scope 2. These are physical energy losses in the electricity grid during the transmission and distribution of electricity.

Offsetting:

We fundamentally support the principle of reducing emissions rather than offsetting them. We plan to offset any unavoidable residual emissions with the support of climate change mitigation projects (excluding the supply chain) that are carried out according to the highest standards, such as those defined by the Gold Standard Foundation.

Other instruments:

A series of measures to avoid smaller carbon emissions (e.g., in canteens, buildings) are also planned. However, these emissions only account for around 2 percent of the total emissions at EnBW.

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