Bertelsmann Bonds / Credit Rating

Bertelsmann uses various financial instruments to diversify its financing sources. In this context the capital market plays an important part in Bertelsmann's financial strategy.

Financing instruments

In the last years Bertelsmann has successfully established at the international capital markets. With larger capital market transactions Bertelsmann attracted new groups of investors (amongst others US Private Placement) and emitted various issues with benchmark status. Currently listed bonds with a total volume of EUR 3.1 billion are outstanding. Bertelsmann is one of the largest issuer of EUR-bonds in the media-segment.

Bertelsmann has access to both variable and fixed-rate financing through various lines of credit. A syndicated line of credit has been in place since October 2004, which was renewed in 2011 and expires in 2017. Bertelsmann SE & Co. KGaA can utilize these to draw down up to EUR 1.2 billion of revolving funds in euros, U.S. dollars and pounds sterling.

Financial strategy

The primary objective of Bertelsmann`s financial policy is to achieve a balance between financial security, return on equity and growth. Accordingly, the Group`s financing policy is based on the requirements of a "Baa1/BBB+" credit rating and the qualitative/ quantitative criteria pertaining thereto. Credit ratings and transparency are of great importance to Bertelsmann`s financial security and independence.

The Bertelsmann Group is centrally financed by Bertelsmann SE & Co. KGaA and its financing company Bertelsmann U.S. Finance LLC. Bertelsmann SE & Co. KGaA provides the Group companies with liquidity and manages the issuance of guarantees and letters of comfort for Group companies. The Group widely forms a single financial unit, thereby optimizing capital procurement and investment opportunities.

Since 2002, Bertelsmann has had credit ratings from the agencies Moody’s and Standard & Poor’s in the Investment Grade area. Thanks to its good credit rating, Bertelsmann can finance itself on the financial market on reasonable terms.