FUNDING RISKS

  • Corio is financed rather conservatively, targeting a leverage between 35% and 40%, but allowing it to temporary exceed up to maximum 45%. Its interest rate risk policy aims to have at least 66% fixed debt, spreading interest resets evenly over a longer period. While conservative, this funding policy may be threatened by:
  • Market financing risk: the funding policy aims to assure the continuity (availability of funds, dependent on solvency and liquidity), funding diversification (sources) and our flexibility in order to not restrict management in achieving strategic targets. It also aims to keep funding costs as low as possible.
  • The risks of breaking ratio’s stipulated by FBI regulations and by debt covenants are continuously monitored. 
  • Future committed cash flows, including capex: a cash flow planning model is used and Corio aims to have sufficient funding to cover net committed cash flows 18 months ahead.

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