The debt ratio (RREC RD) was 52.40% on 31 December 2020. The debt ratio (IFRS) amounts to 50.97%.
Taking into account Home Invest Belgium's strategy to keep its debt level below 55% in the medium and long term, Home Invest Belgium still has a debt capacity of € 38.90 million to finance new investments.
Taking into account a maximum debt ratio of 65%, as determined by the RREC Law, Home Invest Belgium still has a debt capacity of € 242.40 million to finance new investments.
Debt ratio (RREC RD) on 31/12/2020
Composition of financial debts
On 31 December 2020 Home Invest Belgium had € 327.00 million in financial debts, consisting of:
bilateral credit lines for an amount of € 248.00 million, concluded with 6 different financial institutions with well spread maturity dates until 2027. Home Invest Belgium has no maturity date in 2021. The next maturity date is in 2022;
a bond loan in the amount of € 40.00 million maturing in June 2024 and a bond loan under the EMTN programme in the amount of € 9.00 million maturing in 2028;
treasury bills (commercial paper) for an amount of € 30.00 million. Notwithstanding the short-term nature of the outstanding treasury bills (maturing in 2020), the full outstanding amount is covered by available long-term credit lines (back-up lines).
Maturity of financial debts
The weighted average remaining maturity of the financial debts amounts to 4.2 years. On 31 December 2020 Home Invest Belgium had € 50.00 million of undrawn available credit lines of which:
€30.00 million of long-term back-up lines to cover short-term outstanding treasury bills;
€ 20.00 million in freely available credit lines.
As at 31 December 2020, 86.2% of the financial debts (i.e. €282.00 million) had fixed interest rates, including by using Interest Rate Swaps as hedging instruments.
The fixed interest rates have a weighted average remaining maturity of 4.8 years. The total value of the hedges on the closing date was negative for an amount of €5.15 million due to a decrease in interest rates after the hedges were closed.
Through its hedging policy, the Board of Directors wishes to protect the company against a possible rise in interest rates.