Deutsche Bank to Set DWS IPO Price at 32.50 Euros a Share
The management board and supervisory board intend to maintain the Company’s investment grade rating (BBB from Fitch or equivalent from Moody’s and S&P) as well as the leverage ratio (calculated by dividing net financial debt according to IFRS16 by OIBDA according to IFRS16) at or below 2.5x over the medium term (the “Target Leverage”).
Net financial debt will be measured as interest-bearing financial liabilities less interest-bearing financial assets, cash and cash equivalents, taking into account the value of financial derivatives and hedge arrangements.
Future payment obligations in relation to the acquired 5G spectrum are not considered as financial debt. In order to assess compliance with the Target Leverage, OIBDA will be measured as operating income before depreciation and amortization for the last twelve months, excluding non-recurring and exceptional items.
According to its financing policy, the Company aims to: (i) refrain from paying dividends, distributing capital or capital reserves in cash or buying back shares if the ratio of net financial debt/OIBDA materially and consistently exceeds the Target Leverage; and (ii) restrict the use of new debt to pay dividends, allowing it only if the ratio of net financial debt/OIBDA complies with the Target Leverage.