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2nd Interim Report 2018
2nd Interim Report 2018
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2nd Interim Report 2018
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5 Financial instruments and net debt

Swisscom aims not to exceed a net debt of 1.9 times EBITDA (operating income before interest, taxes, depreciation and amortisation). Exceeding this limit temporarily is permitted. As at 31 December 2017, the net debt/EBITDA ratio was 1.7. Net debt comprises financial liabilities less cash and cash equivalents, current financial assets and non-current certificates of deposit, and derivative financial instruments for financing.

Below is a breakdown of financial liabilities and net debt in the first six months of 2018 as well as the fair values of financial assets and liabilities:


In CHF million		   Carrying
amount
31.12.2017		  

Issuance		  

Repayment		  
Other
changes a		   Carrying
amount
30.06.2018		  

Fair Value b
Bank loans   760   2   (35)   (9)   718   746 2
Debenture bonds   6,137   735   –   29   6,901   7,094 1
Private placements   493   –   –   2   495   500 2
Finance lease liabilities   461   –   (14)   3   450   858 2
Derivative financial instruments   60   –   –   (11)   49   49 2
Other financial liabilities   375   1   (2)   (9)   365   365 2
Total financial liabilities   8,286   738   (51)   5   8,978   9,612
Cash and cash equivalents   (525)               (506)   (506) 2
Other financial assets   (314)               (326) c   (326) 2
Net debt   7,447               8,146    
a Interest expense, interest payments as well as other changes.
b Fair value hierarchy.
c Not included are other financial assets with a carrying amount of CHF 105 million, trade receivables and payables as well as other receivables and liabilities whose carrying amount corresponds to a reasonable estimation of their fair value.

In the first quarter of 2018, Swisscom issued a debenture bond for CHF 150 million. It has a coupon of 1.0% and matures in 2035. In addition, in April 2018 Swisscom issued a debenture bond for EUR 500 million (CHF 585 million). It has a coupon of 1.125% and matures in 2026. The funds received were applied to repay existing debt. The debenture bond in EUR was designated for hedge accounting of net investments in foreign operations.