Bond investor information

Short-term liquidity

Two of Syngenta's largest markets are Europe, Africa and the Middle East (EAME) and North America. Both sales and operating profit in these two regions are seasonal and are weighted towards the first half of the calendar year, reflecting the northern hemisphere planting and growing cycle. Latin America is another large market for Syngenta and sales and operating profit there is weighted towards the second half of the calendar year, reflecting the southern hemisphere planting and growing cycle. This seasonal operating activity results in seasonal working capital requirements.

Syngenta's principal source of liquidity consists of cash generated from operations. Working capital fluctuations due to the seasonality of the business are supported by short-term funding available from a $2.5 billion Global Commercial Paper program and a $3 billion committed, revolving, multi-currency syndicated credit facility, which was renewed in July 2023 and which has an expiry date in 2028. Syngenta also entered into another committed, revolving, bilateral credit facility in 2021. This credit facility has an amount of $0.5 billion and expiry date in 2025.

The amount drawn under the syndicated credit facility at December 31, 2023 was $nil (2022: $nil). The average outstanding balance under the syndicated credit facility for the year 2023 was $1,701 million (2022: $115 million). The amount drawn under the bilateral credit facility at December 31, 2023 was $nil (2021: $250 million). The average outstanding balance under the bilateral credit facility for the year 2023 was $409 million (2022: $347 million). The amount drawn under the Global Commercial Paper program at December 31, 2023 was $nil (2021: $nil). The average outstanding balance under the Global Commercial Paper program for the year 2023 was $493 million (2022: $537 million).

Long-term financing

Long-term capital employed is currently financed through unsecured notes and bonds issued in the US, European and Swiss debt capital markets, as well as unsecured notes issued in the US Private Placement market. In addition, funds are raised through term loans with financial institutions and intragroup term loans with Syngenta Group.

Liquidity risk and refinancing risk
Within Syngenta's risk management framework, liquidity risk is defined as the risk of being unable to raise funds to meet payment obligations when they fall due.

Refinancing or funding risk is defined as the risk of being unable, on an ongoing basis, to borrow in the market to fund actual or proposed commitments. Syngenta mitigates its liquidity and refinancing risk by maintaining: committed unsecured funding facilities; ongoing discussions with its core banks to best monitor its funding capacity; simulations; and diversification of its debt portfolio.

Syngenta's liquidity risk policy is to always maintain sufficient liquidity reserves both at Group and subsidiary level to meet payment obligations as they become due, and to maintain an adequate liquidity margin. The planning and supervision of liquidity is the responsibility of the subsidiaries and Group Treasury. Liquidity requirements are forecasted on a weekly basis. Syngenta operates regional or country cash pools to allow efficient use of its liquidity reserves.

Interest rate risk

Syngenta is exposed to fluctuations in interest rates on its borrowings (including forecasted borrowings) and excess cash. While the majority of Syngenta's borrowings have fixed interest rates, portions of Syngenta's net borrowings, including its short-term commercial paper program, drawings under the credit facilities and local borrowings, are subject to changes in short-term interest rates.

Syngenta monitors its interest rate exposures and analyzes the potential impact of interest rate movements on net interest expense. The risk management strategy involves ensuring an efficient fixed/floating mix of total debt within approved interest rate limits.

global.investor_relations@syngenta.com