Syngenta worldwide

Central and North America
South America
Europe
Africa
Asia
Oceania

Close window

Capital Structure

Funding strategy
Capital Structure & Funding Policies
Gearing
Key ratios
Legal Positioning of Group Debt

Funding strategy

Short term liquidity

Although Syngenta operates globally, the two largest markets are Europe, Africa and the Middle East (EAME), and NAFTA, representing approximately 37% and 31% respectively of consolidated sales in 2008 (2007: 36% and 34%). Both sales and operating profit of these two regions are seasonal and are weighted towards the first half of the calendar year, reflecting the northern hemisphere planting and growing cycle. This results in a seasonal working capital requirement.

Syngenta's principal source of liquidity consists of cash generated from operations. Working capital fluctuations due to the seasonality of the business are supported by short term funding available from a USD 2,500 million Global Commercial Paper program supported by a USD 1,200 million committed, revolving, multi-currency, syndicated credit facility.

Long term financing

The long term capital resources are currently financed through an unsecured non-current bond issued under the Euro Medium Term Note (EMTN) program and unsecured non-current Notes issued under a Note Purchase Agreement in the US Private Placement market.

Top of the page

Capital Structure & Funding Policies

Capital Structure

Syngenta is committed to a low single A rating, which provides an optimal balance between financial flexibility and the cost of capital. We aim to maintain balanced capital efficiency through investment to meet the requirements of our growing business, make selective acquisitions and at the same time return cash to shareholders. Our net debt to equity target is 25% to 35%.

Refinancing risk

Syngenta takes a prudent liquidity risk management approach through ongoing monitoring of the cash requirements of the Group and its debt profile. The Company's policies ensure that sufficient headroom is available at all times.

Interest Rates

Syngenta monitors its interest rate exposures and analyzes the potential impact of interest rate movements on net interest expense. Syngenta's policies allow entering into derivative transactions to manage the Group's sensitivity to interest rate movements arising from its financial assets and liabilities.