Fresenius Finance B.V.

Fresenius Finance B.V. is a financing subsidiary of Fresenius SE & Co. KGaA, a global healthcare group headquartered in Bad Homburg, Germany. Its primary function is to manage the group’s financial activities, particularly raising and allocating capital across its various business segments. In essence, it acts as the central treasury and funding vehicle for the Fresenius Group.

As a key component of Fresenius’ financial structure, Fresenius Finance B.V. plays a critical role in ensuring the group has access to the necessary financial resources to support its global operations, strategic investments, and potential acquisitions. This involves a variety of activities, including:

• Issuing Bonds and Other Debt Instruments: Fresenius Finance B.V. is a frequent issuer of bonds in the international capital markets. By tapping into these markets, it secures funding at competitive rates, taking advantage of favorable market conditions and investor demand. The funds raised are then channeled to Fresenius’ operating companies.
• Managing Liquidity: The company is responsible for efficiently managing the group’s cash flow and ensuring that sufficient liquidity is available to meet its short-term and long-term obligations. This includes optimizing cash balances, managing working capital, and forecasting future cash needs.
• Hedging Financial Risks: Fresenius Finance B.V. mitigates financial risks associated with fluctuations in interest rates, exchange rates, and commodity prices. This is achieved through the use of various hedging instruments, such as interest rate swaps, currency forwards, and commodity derivatives.
• Supporting Acquisitions and Strategic Investments: Fresenius often engages in acquisitions and strategic investments to expand its market presence and diversify its portfolio. Fresenius Finance B.V. plays a vital role in structuring the financing for these transactions, ensuring they are financially sound and aligned with the group’s overall strategy.
• Internal Loans and Funding: The entity also provides loans and other forms of funding to Fresenius’ operating companies, streamlining the internal allocation of capital and ensuring that resources are deployed where they are most needed.

Fresenius Finance B.V.’s financial performance is closely linked to the overall performance of the Fresenius Group. Credit rating agencies closely monitor the company’s financial health, and its credit ratings are influenced by the creditworthiness of its parent company. A strong credit rating enables Fresenius Finance B.V. to access capital at lower costs, benefiting the entire group.

The company’s structure, being a B.V. (Besloten Vennootschap) indicates it is a private limited liability company incorporated under Dutch law. This structure is often chosen for financing subsidiaries due to its flexibility and favorable regulatory environment.

In summary, Fresenius Finance B.V. is an integral part of the Fresenius Group’s financial infrastructure, acting as a conduit for capital and a manager of financial risks. Its efficient operations are crucial for supporting the group’s continued growth and its mission of providing high-quality healthcare products and services worldwide.