The Company is committed to a balanced liquidity management strategy to support and develop its operations. Its primary liquidity sources are cash and liquid financial instruments, as well as guaranteed and non-guaranteed credit facilities.
The Company also seeks to minimise the weighted average cost of capital3 through an optimum debt to equity balance.
To minimise the cost of borrowing, the Company seeks to remain active in debt capital markets and meet its target financial and economic metrics required to maintain an investment-grade credit rating (BBB- or above as per S&P rating agency scale), including an the last twelve months net debt / EBITDA ratio at 1.5x or below.
Key borrowing terms are:
— currency — US dollars;
— weighted average maturity
— 3-4 years.
2 EBITDA is the Company’s earnings before interest, taxes, depreciation and amortisation.
3 Weighted average cost of capital (WACC) is the cost of equity and debt used to finance the Company’s activities.