Fixed Income

Bonds & credit rating

Unibail-Rodamco has a strong financial profile, with healthy ratios, a sound balance sheet, good access to liquidity and a diversified debt structure.

Financial ratios	June 30, 2010	Dec 31, 2009
Loan to Value ratio: net financial debt / market value of portfolio¹	31%	32%
Recurring net operating profit Interest Coverage Ratio²	4.1x	3.9x

Debt structure

The Group obtains new financial resources from various financial markets, including the money market (by issuing commercial paper and “billets de trésorerie”), the bank loan market and the bond market.
On June 30, 2010, Unibail-Rodamco's net financial debt stood at €7.3 billion. The Group’s consolidated gross financial debt (€7.4 billion) broke down as follows:

Consolidated nominal gross financial debt breakdown	At June 30, 2010	In million €
Euro Medium Term Notes, Bonds and Convertible Bonds	64%	4,735
Short-term instruments (Billets de Trésorerie & Commercial Paper)	5%	384
Bank loans and overdrafts	31%	2,312

The Group’s commercial paper programmes are backed by confirmed credit lines provided by leading international banks. These credit lines protect the Group against the risk of a temporary or more sustained absence of lenders in the short or medium term debt markets.
On June 30, 2010, the undrawn part of these committed credit lines amounted to ca. €4.0 billion.

Debt maturity

On June 30, 2010, the Group’s debt had an average maturity of 4.5 years. More than three quarters of the Group’s debt had a maturity of more than 3 years. These figures take account of confirmed unused credit lines.

Unibail-Rodamco's immediate debt repayment needs are largely covered by the available undrawn credit lines: the amount of bonds or bank loans outstanding as at June 30, 2010 and maturing or amortising in H2 2010 is €511 Mn. In 2011, the amount is €1,195 Mn to be compared with € 3,988 Mn of undrawn credit lines outstanding as at June 30, 2010.

Average cost of debt

Unibail-Rodamco’s average cost of debt came to 4.1% over H1 2010. It remained stable in comparison with 2009.

Debt ratio

On June 30, 2010, the Loan to Value ratio (net financial debt / market value of the portfolio¹) stood at 31%, compared to 32% on December 31, 2009.

Interest coverage ratio

On June 30, 2010, the Interest Coverage Ratio² of Unibail-Rodamco came to 4.1x, versus 3.9x on December 31, 2009.

1 The portfolio valuation used includes transfer taxes.
2 Calculation based on the ratio [recurring net operating profit (plus other income excluding depreciation and amortization)] / [recurring net financial expenses].