Debt investors

An overview of IHG’s debt facilities is provided on this page, with more information available in our Annual Report, the Results and Presentations section of this website and from debt-related Regulatory News.  The documents relating to the Group’s Euro Medium Term Note Programme can be downloaded below:

The information below was correct at 31 October 2020.

Current Bonds

Amount Issued

Amount Outstanding

Maturity

Interest Rate

GBP 400m

GBP 173m

Nov 22

3.875%

GBP 300m

GBP 300m

Aug 25

3.75%

GBP 350m

GBP 350m

Aug 26

2.125%

EUR 500m

EUR 500m

May 27

2.125%*

EUR 500m

EUR 500m

Oct 24

1.625%**

GBP 400m

GBP 400m

Oct 28

3.375%

* Swapped to GBP 436m at 3.5%

** Swapped to GBP 454m at 2.65%

 

In aggregate and based upon exchange rates at 31 October 2020, we therefore have approximately USD 2,743m of bonds outstanding, with a blended borrowing cost of 3.13% and a weighted average remaining tenor of 5.51 years.

 

Committed Bank Facilities

Amount

Maturity

Interest Rate

USD 1,275m

Sept 2023

Floating rate LIBOR + margin (margin 0.9% - 2.75%)

USD 75m

Sept 2023

Floating rate LIBOR + margin (margin 0.9% - 2.75%)

The bank facilities have customary covenants in respect of interest cover and leverage ratio, tested at half year and full year on a trailing twelve-month basis.

The interest cover covenant requires a ratio of EBITDA to net interest payable above 3.5:1 and the leverage ratio requires Net Debt:EBITDA of below 3.5:1; both ratios are measured on a “frozen GAAP” basis pre-IFRS 16 and include other adjustments.  For 2019, the IFRS 16 adjustment reduced EBITDA and net debt by approximately $70m and $440m respectively.

As announced in April 2020, the tests of these covenants have been waived for 31 December 2020 and 30 June 2021.  The interest cover and leverage ratio covenants have been replaced by a minimum liquidity covenant (defined as unrestricted cash and undrawn facilities with a remaining term of 6 months) which will be tested at 31 December 2020 and 30 June 2021.

Commercial Paper

Description

Amount

Maturity

UK CCFF Programme

GBP 600m

March 2021