3.3 Financing
Capital management
Capital management includes financing and debt structuring, supervision of trade financing activities, management and control of guarantees, cash and liquidity management, and safeguarding against the risk that Alpiq Holding Ltd., or another group company, becomes unable to meet its payment obligations. All these activities are regulated in the Financial Risk Directive.
As part of the budgeting and planning process, the Board of Directors takes note of the financial targets and the required target liquidity on an annual basis. Target liquidity consists of risk capital and required working capital. In addition, the Board of Directors receives regular reports.
Alpiq Holding Ltd. procures a significant portion of financing centrally for the Alpiq Group. The Swiss capital market remains the main source of financing. The aim pursued in financing the Group is that the level of financial liabilities contributes to a solid credit rating in line with industry standards.
The capital management strategy in principle focuses on the Group’s reported consolidated equity and net debt-to-EBITDA ratio. In 2024, Alpiq successfully repaid its outstanding hybrid bond in full, reinforcing its financial position and commitment to disciplined capital management.
At 31 December 2024, the Group reported an equity ratio of 58.3%, which is 12.4 percentage points above the previous year. This strong increase was driven mainly by lower energy prices, which reduced the value of energy derivatives and receivables, leading to a decline in total assets.
The net debt-to-EBITDA ratio before non-operating effects ratio is calculated and compares with the previous year as follows:
CHF million | 31 Dec 2024 | 31 Dec 2023 |
Non-current financial liabilities | 994.5 | 1,192.0 |
Non-current financial liabilities under liabilities held for sale | 0.6 | 1.0 |
Current financial liabilities | 254.8 | 404.0 |
Financial liabilities | 1,249.9 | 1,597.0 |
Current term deposits | 117.3 | 370.7 |
Cash and cash equivalents | 1,561.1 | 1,572.9 |
Financial assets (liquidity) | 1,678.4 | 1,943.6 |
Net cash | – 428.4 | – 346.6 |
Adjusted EBITDA 1 | 962.4 | 1,183.8 |
Net cash / adjusted EBITDA | – 0.4 | – 0.3 |
1For more information about adjusted EBITDA, please refer to the unaudited explanations in the Financial Review.
Financial liabilities
CHF million | Bonds | Loans payable | Lease liabilities | NCI put option | Total |
Non-current financial liabilities at 1 January 2024 | 824.8 | 337.2 | 30.0 | 1,192.0 | |
Current financial liabilities at 1 January 2024 | 260.4 | 138.5 | 5.1 | 404.0 | |
Financial liabilities at 1 January 2024 | 1,085.2 | 475.7 | 35.1 | 0.0 | 1,596.0 |
Acquisition / disposal of subsidiaries | 10.5 | 10.5 | |||
Proceeds from financial liabilities 1 | 31.3 | 1.8 | 33.1 | ||
Repayment of financial liabilities | – 260.0 | – 166.2 | – 6.8 | – 433.0 | |
Unwinding of discount | 0.2 | 0.8 | 1.4 | 2.3 | |
Adjustment of lease agreements | – 0.4 | – 0.4 | |||
Other changes | – 0.4 | 35.1 | 34.7 | ||
Currency translation differences | 5.2 | 0.9 | 6.1 | ||
Financial liabilities at 31 December 2024 | 825.0 | 357.2 | 31.9 | 35.1 | 1,249.3 |
Non-current financial liabilities at 31 December 2024 | 625.1 | 308.0 | 26.3 | 35.1 | 994.5 |
Current financial liabilities at 31 December 2024 | 199.9 | 49.2 | 5.6 | 254.8 |
1Lease liabilities in amount of CHF 1.8 million not cash effective.
CHF million | Bonds | Loans payable | Lease liabilities | Total |
Non-current financial liabilities at 1 January 2023 | 709.3 | 331.1 | 34.9 | 1,075.3 |
Current financial liabilities at 1 January 2023 | 140.3 | 379.5 | 5.9 | 525.7 |
Financial liabilities at 1 January 2023 | 849.6 | 710.6 | 40.8 | 1,601.0 |
Proceeds from financial liabilities 1 | 375.2 | 163.1 | 4.1 | 542.4 |
Repayment of financial liabilities | – 139.6 | – 388.1 | – 7.3 | – 535.0 |
Unwinding of discount | 0.6 | 0.5 | 1.1 | |
Adjustment of lease agreements | – 0.4 | – 0.4 | ||
Reclassified to “Liabilities held for sale” | – 1.0 | – 1.0 | ||
Currency translation differences | – 10.5 | – 1.6 | – 12.1 | |
Financial liabilities at 31 December 2023 | 1,085.2 | 475.7 | 35.1 | 1,596.0 |
Non-current financial liabilities at 31 December 2023 | 824.8 | 337.2 | 30.0 | 1,192.0 |
Current financial liabilities at 31 December 2023 | 260.4 | 138.5 | 5.1 | 404.0 |
1Lease liabilities in amount of CHF 4.1 million not cash effective.
Bonds
Bonds outstanding at the reporting date
CHF million | Maturity | Earliest repayment date | Effective interest rate % | Carrying amount at 31 Dec 2024 | Carrying amount at 31 Dec 2023 |
Alpiq Holding Ltd. CHF 260 million nominal amount, 2.63% fixed rate | 2014 / 2024 | 29 Jul 2024 | 2.71 | 260.2 | |
Alpiq Holding Ltd. CHF 200 million nominal amount, 1.63% fixed rate | 2022 / 2025 | 30 May 2025 | 1.69 | 200.0 | 200.0 |
Alpiq Holding Ltd. CHF 250 million nominal amount, 1.75% fixed rate | 2022 / 2026 | 24 Jun 2026 | 1.63 | 249.9 | 250.0 |
Alpiq Holding Ltd. CHF 220 million nominal amount, 3.13% fixed rate | 2023 / 2027 | 29 Apr 2027 | 3.03 | 220.2 | 220.0 |
Alpiq Holding Ltd. CHF 155 million nominal amount, 3.38% fixed rate | 2023 / 2030 | 29 Apr 2030 | 3.32 | 154.9 | 155.0 |
The weighted interest rate on the bonds issued and listed on the SIX Swiss Exchange based on the nominal value at the reporting date is 2.52% (previous year: 2.43%), and that on the loans payable is 2.03% (2.61%). The latter also includes project financing denominated in euros. The weighted average interest rate of the bonds and the loans payable is 2.36% (2.48%).
Credit lines
The Alpiq Group has the following bank credit lines:
CHF million | 31 Dec 2024 | 31 Dec 2023 |
Non-earmarked credit lines committed by banks and financial institutions | 1,700.0 | 859.1 |
Of which, utilised | 30.0 | |
Of which, still available | 1,700.0 | 829.1 |
In 2023, Alpiq Group had a bilateral term loan of CHF 30 million, which was fully drawn. The facility was subject to an equity ratio covenant, which was complied with as of 31 December 2023. The loan was fully repaid in 2024. As of 31 December 2024, Alpiq’s financing agreements no longer include any covenant requirements.
Equity
Share capital
The share capital of CHF 0.331 million (previous year: CHF 0.331 million) consists of 33,110,364 registered shares at a par value of CHF 0.01 each and is fully paid in. The shareholder structure breaks down as follows:
Stakes in % at 31 Dec 2024 | Stakes in % at 31 Dec 2023 | |
EOS HOLDING SA | 33.33 | 33.33 |
Schweizer Kraftwerksbeteiligungs-AG | 33.33 | 33.33 |
EBM (Genossenschaft Elektra Birseck) | 19.91 | 19.91 |
EBL (Genossenschaft Elektra Baselland) | 6.44 | 6.44 |
Eniwa Holding AG | 2.12 | 2.12 |
Aziende Industriali di Lugano (AIL) SA | 1.79 | 1.79 |
IBB Holding AG | 1.12 | 1.12 |
Regio Energie Solothurn | 1.00 | 1.00 |
WWZ AG | 0.96 | 0.96 |
At the Annual General Meeting on 15 May 2025, the Board of Directors of Alpiq Holding Ltd. will propose a dividend distribution of CHF 4.90 per share (totalling CHF 162.2 million) for the financial year 2024. In the previous year, the dividend was CHF 3.50 per share, totaling CHF 115.9 million.
Hybrid capital
In 2013, Alpiq issued a CHF 650.0 million public hybrid bond on the Swiss capital market. The bond had no maturity date and was classified as equity under IFRS Accounting Standards. Alpiq retained the option to repay the bond annually on 15 November. In September 2024, Alpiq announced its decision to exercise this option, and on 15 November 2024 the notional amount of CHF 650.0 million, along with interest of CHF 40.7 million, was repaid. In the previous year, interest payments of CHF 29.5 million were made and accrued interest amounted to CHF 5.0 million. Interest after tax attributable to 2024 amounted to CHF 35.6 million (previous year: CHF 30.7 million).
Non-controlling interest put option
Alpiq and the minority shareholders of P2X have included a put option in the shareholder agreement, allowing the minority shareholders to sell their shares to Alpiq at the beginning of 2028 at a predefined price, subject to the achievement of certain milestones. The present value of the purchase price, amounting to CHF 35.1 million, is recognised as a non-current financial liability, with a corresponding reduction in retained earnings.