Our financing strategy provides timely, cost efficient and secure financial resources to the Group and manages Vodafone’s capital structure in line with its targeted low single A credit rating.
The Group's policy is to borrow centrally using a mixture of long-term and short-term capital market issues and borrowing facilities to meet anticipated funding requirements. In respect of certain emerging markets, we may elect to borrow on a non-recourse basis.
Risk management is at the core of our financing policies. We use derivative instruments to manage our currency and interest rate risk and collateral support agreements to mitigate the credit risk of banking counterparts. Liquidity risk on long-term borrowings is managed by maintaining a disciplined maturity profile.
Our mid to long-term debt is primarily financed via corporate bonds programmes. Our short-term funding requirements are met through our commercial paper programme.
Debt issuance programme
We have two bond programmes to meet our medium to long-term funding requirements; a €30 billion euro medium-term note (EMTN) programme and a US shelf programme.
Issuers Vodafone Group Plc Programme value €30,000,000,000 Arranger The Royal Bank of Scotland Dealers Banca IMI, Barclays Capital, BofA Merrill Lynch, Deutsche Bank, ING Commercial Banking, Lloyds Bank Corporate Markets, Santander Global Banking & Markets, The Royal Bank of Scotland, UniCredit Bank, Banco Bilbao Vizcaya Argentina S.A., BNP PARIBAS, Cit, HSBC, J.P. Morgan Cazenove, Morgan Stanley, Societe Generale Corporate & Investment Banking, UBS Investment Bank Issuances Public syndicated issuances and private placements Paying agent HSBC
US shelf programme
All bonds are issued by Vodafone Group Plc listed on the New York Stock Exchange
Issuers Vodafone Group Plc Paying agent BNY Mellon Bond CUSIP Currency Volume Minimum denominations Coupon Coupon frequency Maturity Terms VG 3yr $0.7bn (FRN) 92857W BB5 USD 700,000,000 1,000 3m $ LIBOR + 38.5bps Quarterly 19/02/16
VG 3yr $0.9bn 92857W BA7 USD 900,000,000 1,000 0.875% Semi annual 19/02/16
VG 5yr $1.4bn 92857W BE10 USD 1,400,000,000 1,000 1.500% Semi annual 19/02/18
VG 3yr $1.6bn 92857W BC3 USD 1,600,000,000 1,000 2.950% Semi annual 19/02/23
VG 3yr $1.4bn 92857W BD1 USD 1,400,000,000 1,000 4.375% Semi annual 19/02/43
VG $1bn 5% 92857WAF7 USD 1,000,000,000 1,000 5.000% Semi annual 16/12/13 Sep 03 VG $1.25bn 4.15% 92857WAT7 USD 1,250,000,000 1,000 4.150% Semi annual 06/10/14 Jun 09 VG $900m 5.375% 92857WAD2 USD 900,000,000 1,000 5.375% Semi annual 30/1/15
VG $750m 5% 92857WAG5 USD 750,000,000 1,000 5.000% Semi annual 15/9/15 VG $500m 3.375% 92857WAU4 USD 500,000,000 1,000 3.375% Semi annual 24/11/15 Nov 09 VG $750m 5.75% 92857WAK6 USD 750,000,000 1,000 5.750% Semi annual 15/3/16 Mar 06 VG $600m 2.875% 92857WAW0 USD 600,000,000 1,000 2.875% Semi annual 16/3/16 Mar 11 VG $1.3bn 5.625% 92857WAP5 USD 1,300,000,000 1,000 5.625% Semi annual 27/2/17 Feb 07 VG $1bn 1.625% 92857WAX8 USD 1,000,000,000 1,000 1.625% Semi annual 20/03/17 Mar 12 VG $500m 4.625% 92857WAE0 USD 500,000,000 1,000 4.625% Semi annual 15/7/18 Jun 03 VG >VG $1.25bn 5.45% 92857WAS9 USD 1,250,000,000 1,000 5.450% Semi annual 06/10/19 Jun 09 VG $500m 4.375% 92857WAV2 USD 500,000,000 1,000 4.375% Semi annual 16/3/21 Mar 11 VG $750m 7.875% 92857TAC1 USD 750,000,000 1,000 7.875% Semi annual 15/2/30 VG $750m 7.875% USG9387SAN56 USD 750,000,000 1,000 7.875% Semi annual 15/2/30 VG $744.4m 7.875% 92857TAH0 USD 744,400,000 1,000 7.875% Semi annual 15/2/30 VG $495m 6.25% 92857WAB6 USD 495,000,000 1,000 6.250% Semi annual 30/11/32 Nov 02 VG $1.7bn 6.15% 92857WAQ3 USD 1,700,000,000 1,000 6.150% Semi annual 27/2/37
VG $1bn 1.25% 92857WAY66 USD 1,000,000,000 1,000 1.250% Semi annual 26/09/17 Sep 12 VG $1bn 2.5% 92857WAZ32 USD 1,000,000,000 1,000 2.500% Semi annual 26/09/22 Sep 12
We have US and euro commercial paper programmes of $15 billion and €5 billion respectively, which are available to meet short-term liquidity requirements.
Issuer Vodafone Group Plc ECP Programme volume £5bn USCP Programme volume £15bn Arranger - ECP The Royal Bank of Scotland ECP Dealers Barclays Capital, BofA Merrill Lynch, Citi, Goldman Sachs, The Royal Bank of Scotland, UBS Investment Bank. ECP Agent Citibank USCP Dealers Barclays Capital, BofA Merrill Lynch, Citi, Goldman Sachs, The Royal Bank of Scotland, J.P. Morgan Cazenove USCP Agent Citibank
Our commercial paper programmes are supported by two syndicated revolving credit facilities for €4.2 billion and US$4.2 billion.
Present rating and outlook
Rating agency Short term Long term Outlook Moody's P-2 Baa1 Stable Fitch F-2 BBB+ Stable Standard and Poor's A-2 A- Negative outlook
Outlook as of August 2014