GLP Financial Policy
GLP’s Financial Policy (“Policy”) is approved by the GLP Board of Directors and reviewed by the Audit Committee on a quarterly basis.
GLP’s strategy is underpinned by a robust balance sheet, strong liquidity and modest leverage so key financial performance indicators are frequently reviewed and updated depending on business requirements and/or economic conditions to meet this strategy.
This Policy governs how GLP manages its financial risks such as interest rate risk, debt maturity profile, foreign exchange risk and liquidity risk. Our financial performance is benchmarked against set targets on a regular basis as set out in the financial risk management framework.
GLP is committed to maintaining an investment grade credit rating of at least BBB and has incorporated key financial metrics defined by our credit rating agencies into the Board approved Policy. Such financial metrics are measured and tracked quarterly with results communicated back to the Board.
Credit Rating
Fitch | BBB- |
S&P | BBB- |
Financial Metrics | Target | Definitions |
Funds from Operations / Total Debt | More than 10% | Funds from Operations / Total Debt, which is defined as Adjusted EBITDA1 less Cash Interest and Taxes paid2 divided by Total Debt3 |
Interest Coverage ratio | More than 2.5x | Interest Coverage ratio, which is defined as Adjusted EBITDA1 divided by Cash Interest paid4 |
Consolidated Net Leverage ratio | Less than 45% | Consolidated Net Leverage ratio, which is defined as Consolidated Net Debt divided by Consolidated Total Assets less Cash |
Notes:
- Adjusted EBITDA includes our pro-rata share of EBITDA from joint ventures and associates, as well as monetized fair value gains
- Cash Interest and Taxes paid includes our pro-rata share of interest and taxes paid at joint ventures and associates
- Total Debt includes our pro-rata share of debt from joint ventures and associates
- Cash Interest paid includes our pro-rata share of interest paid at joint ventures and associates
Interest Rate Risk
- Maintain a mix of fixed and variable rate debt
- Manage interest cost at competitive levels
Debt Profile
- Ensure weighted average debt maturity > 3 years
- Ensure encumbered debt < 50% of total debt
FX Risk
- Eliminate transactional FX exposure by hedging once transaction is committed
- Maintain natural hedge for translational FX exposures
Liquidity Risk
- Maintain sufficient facilities headroom to cater for black swan events
- Maintain access to diversified sources of capital
Listed Bonds
GLP Pte Ltd
USD 5 Billion Euro Medium Term Note Programme
For institutional and accredited investors only
Listed bonds issued under the EMTN Programme
Bond Series | Currency | Amount (Million) | Tenor (Years) | Coupon | Issue Date |
Series 4 | USD | 1,000 | 10 | 3.875% | 4 June 2015 |
GLP Pte Ltd
JPY 15.4 Billion Tokyo Pro-Bond Programme Guaranteed by Credit Guarantee and Investment Facility (“CGIF”)
For professional investors only
Listed bonds issued under the Tokyo Pro-Bond Programme
Bond Series | Currency | Amount (Million) | Tenor (Years) | Coupon | Issue Date |
Series 1 | JPY | 15,400 | 9 | 0.55% | 24 Dec 2020 |
GLP China
HKD 20 Billion Euro Medium Term Note Programme
For institutional and accredited investors only
Listed bonds issued under the MTN Programme
Bond Series | Currency | Amount (Million) | Tenor (Years) | Coupon | Issue Date |
Series 1 | USD | 500 | 5 | 4.974% | 26 Feb 2019 |
For debt investor inquiries, please contact:
SVP, Global Treasurer
Edwin Tey
For debt investor inquiries, please contact:
SVP, Global Treasurer
Edwin Tey