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Capital Structure & Funding Framework
Set an optimal capital structure and funding mix.
Principles
- Capital structure follows strategy
- Rating, headroom and flexibility before yield
- Diversified by source, tenor and currency
Capabilities
- Optimal capital mix
- Cost of capital
- Dividend & buyback policy
- Rating management
Operating model
- Capital structure review with the board annually
- Quarterly funding plan review
Core controls
- Leverage and gearing limits
- Covenant headroom thresholds
KPIs
How this framework is measured
Net Debt / EBITDA
Formula · Net Debt / Trailing EBITDA
Threshold · ≤ covenant – 0.5×
Interest Cover
Formula · EBITDA / Interest Expense
Threshold · ≥ 4×
Debt Service Coverage Ratio (DSCR)
Formula · EBITDA / Debt Service
Threshold · ≥ 1.5×
Covenant Headroom
Formula · Actual − Covenant Threshold
Threshold · ≥ 15% of threshold
Knowledge Graph