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Financial assets and liabilities

6 Months Ended

Jun. 30, 2023

Financial assets and liabilities

Financial assets and liabilities

10. Financial assets and liabilities

At June 30, 2023 the Group’s net debt and available liquidity was as set out below:

Maximum

Final

amount

maturity

Facility

Available

Facility

Currency

drawable

date

type

Amount drawn

liquidity

Local

Local

currency

currency

$'m

$'m

m

m

2.000% Senior Secured Green Notes

EUR

450

01-Sep-28

Bullet

450

489

—

3.250% Senior Secured Green Notes

USD

600

01-Sep-28

Bullet

600

600

—

6.000% Senior Secured Green Notes

USD

600

15-Jun-27

Bullet

600

600

—

3.000% Senior Green Notes

EUR

500

01-Sep-29

Bullet

500

543

—

4.000% Senior Green Notes

USD

1,050

01-Sep-29

Bullet

1,050

1,050

—

Global Asset Based Loan Facility

USD

407

06-Aug-26

Revolving

—

70

337

Lease obligations

Various

—

—

Amortizing

—

392

—

Other borrowings

Various

—

Rolling

Amortizing

—

40

—

Total borrowings

3,784

337

Deferred debt issue costs

(33)

—

Net borrowings

3,751

337

Cash, cash equivalents and restricted cash

(182)

182

Derivative financial instruments used to hedge foreign currency and interest rate risk

12

—

Net debt / available liquidity

3,581

519

The fair value of the Group’s total borrowings, excluding lease obligations at June 30, 2023 is $2,847 million (December 31, 2022: $2,742 million).

A number of the Group’s borrowing agreements contain certain covenants that restrict the Group’s flexibility in areas such as the incurrence of additional indebtedness (primarily maximum secured borrowings to Adjusted EBITDA and a minimum Adjusted EBITDA to interest expense), payment of dividends and incurrence of liens.

The Global Asset Based Loan Facility is subject to a fixed charge coverage ratio covenant if 90% or more of the facility is drawn. The facility also includes cash dominion, representations, warranties, events of default and other covenants that are of a nature customary for such facilities.

At December 31, 2022 the Group’s net debt and available liquidity was as follows:

Maximum

Final

amount

maturity

Facility

Available

Facility

Currency

drawable

date

type

Amount drawn

liquidity

Local

Local

currency

currency

$'m

$'m

m

m

2.000% Senior Secured Green Notes

EUR

450

01-Sep-28

Bullet

450

480

—

3.250% Senior Secured Green Notes

USD

600

01-Sep-28

Bullet

600

600

—

6.000% Senior Secured Green Notes

USD

600

15-Jun-27

Bullet

600

600

—

3.000% Senior Green Notes

EUR

500

01-Sep-29

Bullet

500

533

—

4.000% Senior Green Notes

USD

1,050

01-Sep-29

Bullet

1,050

1,050

—

Global Asset Based Loan Facility

USD

415

06-Aug-26

Revolving

—

—

415

Lease obligations

Various

—

—

Amortizing

—

327

—

Other borrowings

Various

—

Rolling

Amortizing

—

40

—

Total borrowings

3,630

415

Deferred debt issue costs

(38)

—

Net borrowings

3,592

415

Cash, cash equivalents and restricted cash

(555)

555

Net debt / available liquidity

3,037

970

The maturity profile of the Group’s net borrowings is as follows:


		At June 30,		At December 31,
		2023		2022
		$'m		$'m
Within one year or on demand		140		68
Between one and three years		132		100
Between three and five years		720		704
Greater than five years		2,792		2,758
Total borrowings		3,784		3,630
Deferred debt issue costs		(33)		(38)
Net borrowings		3,751		3,592

Earnout Shares and Warrants

Please refer to note 12 for further details about the recognition and measurement of the Earnout Shares as well as the Public Warrants and Private Warrants.

Financing activity

Lease obligations at June 30, 2023 of $392 million (December 31, 2022: $327 million), primarily reflects $103 million of new lease liabilities, partly offset by $38 million of principal repayments, in the six months ended June 30, 2023.

At June 30, 2023, the Group had $337 million available under the Global Asset Based Loan Facility (December 31, 2022: $415 million).

Fair value methodology

There has been no change to the fair value hierarchies for determining and disclosing the fair value of financial instruments.

Fair values are calculated as follows:

(i)	Senior Secured Green and Senior Green Notes – the fair value of debt securities in issue is based on valuation techniques in which all significant inputs are based on observable market data and represent Level 2 inputs.

(ii)	Global Asset Based Loan Facility and other borrowings – the fair values of the borrowings in issue is based on valuation techniques in which all significant inputs are based on observable market data and represent Level 2 inputs.

(iii)

Cross currency interest rate swaps (“CCIRS”) – The fair values of the CCIRS are based on quoted market prices and represent Level 2 inputs.

(iv)	Commodity and foreign exchange derivatives – the fair value of these derivatives are based on quoted market prices and represent Level 2 inputs.

(v)

Earnout Shares, Private Warrants and Public Warrants – the fair values of the Earnout Shares and Private Warrants are based on valuation techniques using an unobservable volatility assumption which represents Level 3 inputs, whereas the fair value of the Public Warrants is based on an observable market price and represents a Level 1 input.

Foreign currency derivative financial instruments

The Group operates in a number of currencies and, accordingly, hedges a portion of its currency transaction risk. Cash of $1 million was received and cash of $11 million was paid in respect of hedging in the three and six months ended June 30, 2023 respectively (2022: $20 million and $30 million recieved) and is presented as settlement of foreign currency derivative instruments in the unaudited consolidated interim statement of cash flows.

Cross currency interest rate swaps

In the six months ended June 30, 2023, the Group entered into a series of CCIRS, swapping $300 million into synthetic GBP debt. These CCIRS were designated as hedge accounting arrangements to hedge certain portions of it borrowings and interest thereon, and had a net liability position of $12 million at June 30, 2023.