Our financing strategy pursues different objectives:
- Ensuring our investment grade ratings and excellent access to capital markets
- Focus on ESG
- Balanced capital structure and increased diversification of funding sources
- Optimising our duration and maturity profile
- Optimising our funding costs and ensuring adequate liquidity at all times
The success of our funding strategy is reflected in the following:
- Very good access to the international equity and debt capital markets through our investment-grade ratings from Standard & Poor’s (“BBB+”), Moodys (“Baa1”) as well as Scope (“A-“)
- Balanced maturity profile
- Balanced debt structure
- with various unsecured corporate bonds (since 2022 also as social bonds and green bonds in EUR and SEK – whereby the green bonds are 100% aligned with the EU taxonomy)
- added by promissory note loans, secured and unsecured structured finance and subsidised loans
- and a synchronised hedging strategy for exchange rate and interest rate risks
- Access to capital markets based on a solid equity ratio and a loan-to-value ratio at the lower end of the target corridor of 40 to 45 %
The flexibility and variability in financing achieved by implementing this financing strategy will also allow Vonovia to develop its business in the future.
Vonovia is responsible for financing the Group as a whole and the Group companies individually. Vonovia procures the necessary funds flexibly on the international equity, debt and credit markets in line with its financing strategy.
Based on the current investment-grade ratings by Standard & Poor’s, Moodys and Scope, Vonovia has excellent access to the equity and debt capital markets in order to ensure balanced and flexible financing with a balanced maturity profile and an optimal capital structure in line with our financing strategy.