E.ON’s Financial Strategy
Debt capital represents an important financing source for the E.ON Group. Therefore, we follow a financial strategy which satisfies both outside creditors and shareholders.
The core of E.ON's finance strategy is its target capital structure. This is defined via a debt factor1 of 3x. A debt ratio at this level is compatible with E.ON's current "Single A flat" target rating according to today's rating methodology and structures.
To offer investors a maximum of safety E.ON has largely centralized its financing activities, which means that these are mainly conducted at E.ON AG level or at the level of finance companies it guarantees.
E.ON is interested in a wide-ranging diversification of its investor base and is therefore placing its issues in different markets, currencies and with different maturities.
In addition to E.ON shares, E.ON’s bonds therefore also represent an attractive investment opportunity.
1Defined as economic net debt/ EBITDA;
Economic net debt = net financial debt + pensions and asset retirement provisions
