Liquidity and solvency
Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. Due to the dynamic nature of the underlying businesses, PostNL attempts to maintain flexibility in funding by keeping available a committed multi-currency revolving credit facility of €200 million, which expires in 2028.
As at 31 December 2023, the company’s current assets and current liabilities amounted to €943 million and €1,280 million respectively. The current assets contained €518 million of cash and cash equivalents. This position does not contain any restricted cash. Included in the current liabilities is an upcoming Eurobond repayment of nominal €353 million due in November 2024. Based on its ability to realise its assets and its proven cash flow-generating capability, the company expects to be able to discharge its liabilities in the normal course of business. Should the need arise, the company has (re)financing options available, backed by its committed credit facility of €200 million and an investment grade credit rating.
As mentioned, PostNL has a €200 million revolving credit facility in place. With the facility, PostNL secures the availability of future financing at updated terms and lower costs, in line with its financial policy. PostNL wants to be the driver of sustainable logistics in the Benelux. Therefore, the margin PostNL pays is partly dependent on the successful execution of its emission-reduction strategy. As at 31 December 2023, the committed credit facility of €200 million (maturity date: December 2028) was undrawn (2022: undrawn).
Our current S&P Global Ratings credit rating is BBB with negative outlook. The terms and conditions of PostNL’s material long-term and short-term debts, as well as its material drawn or undrawn credit facilities, do not include any financial covenants. There are no obligations to accelerate repayments of these debts and committed facilities in the event of a credit rating downgrade.