[30] Financial liabilities
Non-current and current financial liabilities relate to the Company’s general funding and essentially comprised promissory notes, corporate bonds, and liabilities to banks as at December 31, 2024. Financial liabilities as at the reporting date break down as follows:
in € million |
Dec. 31, 2024 |
Dec. 31, 2023 |
||
|---|---|---|---|---|
Promissory notes |
528.5 |
696.0 |
||
due within one year |
79.5 |
69.5 |
||
due in one to five years |
407.6 |
585.0 |
||
due in more than five years |
41.5 |
41.5 |
||
|
|
|
||
Bonds |
995.2 |
498.0 |
||
due within one year |
499.1 |
– |
||
due in one to five years |
496.0 |
498.0 |
||
due in more than five years |
– |
– |
||
|
|
|
||
Liabilities to banks |
146.9 |
272.4 |
||
due within one year1 |
90.2 |
108.2 |
||
due in one to five years1 |
56.7 |
164.2 |
||
due in more than five years |
– |
– |
||
|
|
|
||
Other financial liabilities |
29.6 |
56.0 |
||
due within one year |
29.5 |
38.1 |
||
due in one to five years |
0.2 |
17.9 |
||
due in more than five years |
– |
– |
||
|
|
|
||
Total current financial liabilities |
698.3 |
215.8 |
||
|
|
|
||
Total non-current financial liabilities |
1,002.0 |
1,306.6 |
||
|
||||
Promissory notes
As at December 31, 2024, the total nominal amount of the issued promissory notes was €530.0 million (December 31, 2023: €699.5 million). The decrease was the result of an early and a scheduled repayment of two tranches of promissory notes in a total amount of €169.5 million in 2024.
The following table shows the nominal amounts and interest-rate types of the promissory notes issued by KION GROUP AG. The fixed-rate promissory notes have coupons of between 1.5 percent and 5.1 percent.
in € million |
Maturity date |
Dec. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|---|
Variable interest rate |
|
|
|
Promissory note (7-year term) |
June 2025 |
– |
100.0 |
Promissory note (7-year term) |
April 2026 |
48.0 |
48.0 |
Promissory note (3-year term) |
October 2026 |
25.0 |
25.0 |
Promissory note (10-year term) |
April 2027 |
11.5 |
11.5 |
Promissory note (5-year term) |
October 2028 |
256.0 |
256.0 |
Promissory note (7-year term) |
October 2030 |
29.5 |
29.5 |
|
|
|
|
Fixed interest rate |
|
|
|
Promissory note (7-year term) |
April 2024 |
– |
69.5 |
Promissory note (7-year term) |
June 2025 |
79.5 |
79.5 |
Promissory note (10-year term) |
April 2027 |
16.0 |
16.0 |
Promissory note (5-year term) |
October 2028 |
52.5 |
52.5 |
Promissory note (7-year term) |
October 2030 |
12.0 |
12.0 |
|
|
|
|
Promissory notes |
|
530.0 |
699.5 |
KION GROUP AG has entered into an interest-rate swap in order to hedge the fair value risk resulting from a fixed-rate tranche. The interest-rate swap is recognized as a fair value hedge in accordance with IFRS 9 (see note [42]).
The promissory notes are not secured.
Corporate bonds
In 2020, KION GROUP AG launched a corporate bond program (EMTN program) with a total volume of €3 billion. The first bond was placed on the capital markets under this program in 2020 and had a nominal amount of €500.0 million, a maturity date in 2025, and a coupon of 1.625 percent. The bond is not secured. A second unsecured bond with a nominal amount of €500.0 million, a maturity date in 2029, and a coupon of 4.0 percent was placed on the capital markets under the EMTN program in November 2024.
Liabilities to banks
[ESRS 1.123] KION GROUP AG has a syndicated revolving credit facility (RCF) with a total volume of €1,385.7 million and a term that ends in October 2028. The facility has a variable interest rate; the contractually agreed interest terms are linked to KION GROUP AG’s credit rating and to compliance with sustainability KPIs.
The revolving credit facility was undrawn as at December 31, 2024 (December 31, 2023: drawdown of €21.0 million). The unused portion of the RCF therefore stood at €1,385.7 million (December 31, 2023: €1,364.7 million).
As at December 31, 2024, there were no bilateral bank loans that had been taken out centrally by KION GROUP AG (December 31, 2023: €100.0 million). Group companies had taken out bank loans of €146.9 million as at the reporting date (December 31, 2023: €151.4 million). KION GROUP AG generally issues guarantees to the banks for Group companies’ existing payment obligations. The liabilities to banks are not secured.
Other financial liabilities
KION GROUP AG launched a commercial paper program in November 2019 that currently has a maximum program volume of €750.0 million. The commercial paper is issued with a discount but without a coupon and has a term of up to one year. There was no commercial paper in issue as at December 31, 2024 (December 31, 2023: €20.0 million).
Covenants
The revolving credit facility and a number of promissory notes taken out by KION GROUP AG stipulate adherence to covenants. The agreed financial covenant involves ongoing testing of adherence to a maximum level of leverage (defined as the ratio of industrial net operating debt (INOD) to adjusted EBITDA). As at December 31, 2024, the actual level of leverage was well below the limit of the financial covenant. As contractually agreed, this calculation is suspended in respect of the revolving credit facility because KION GROUP AG has two investment-grade credit ratings.
Exceeding the agreed maximum level of leverage as at a particular reference date gives lenders a right of termination.