Financial policy

In principle, our financial policy is designed to allow us to maintain a solid A rating. This means that we are able to continue to invest in our networks and grow the business thanks to our financial position. It enables us to pursue our strategy. 

Financial framework

Alliander’s financial framework is formed by the FFO/net debt, interest cover, net debt/net debt plus equity and solvency ratios. These ratios and associated standards are important in obtaining and retaining a solid A rating profile. In a departure from IFRS, when calculating the ratios, the subordinated perpetual shareholder loan and the convertible shareholder loan are treated as 50% equity and 50% debt capital. Security deposits paid and received in the context of network losses are excluded from the ratio calculations. 

Financial policy

The financial policy remained unchanged in 2023:

  • Credit rating: solid A rating profile

  • FFO/net debt ratio: at least 15%

  • Interest coverage: at least 3.5

  • Net debt/(net debt + equity): maximum of 60%

  • Compliance with regulatory requirements for network operators

Ratios on the basis of Alliander’s financial policy



31 December 2023

31 December 2022

FFO/net debt

> 15%



Interest cover

> 3,5



Net debt/(net debt + equity)

< 60%




> 30%



Dividend policy

As part of the financial policy, the dividend policy provides for distributions of up to 45% of the profit after tax, adjusted for fair value movements, periodic payments relating to loans that are recognised in equity and exceptional items that did not lead to a cash flow, unless investments or financial criteria demand a higher profit retention percentage and/or unless the solvency ratio falls below 30% after payment of dividend. For more information, see the proposed profit appropriation for 2023.

Investment policy

The investment policy is consistent with the financial policy and is part of Alliander’s strategy. Elements of investment policy include compliance with regulatory requirements relating to investments in the regulated domain, such as safety and reliability, and the generation of an adequate return on investment. Ordinary investment proposals are tested against minimum return requirements and criteria as set out in the financial policy. Innovative schemes require specific Management Board approval. As well as quantitative standards, investment proposals must also satisfy qualitative requirements. It should also be noted that, in principle, investments in the regulated domain arise from a network operator’s statutory duties.

Social performance

Alliander makes a major contribution to the prosperity of the Netherlands, indirectly through the considerable impact that the distribution of energy has for the Dutch economy and for the quality of life experienced through the permanent availability of energy. This is further explained in our impact model in the section Our impact on society. The dividend distributed to shareholders and payments to providers of capital and government authorities make an indirect contribution to social goals. The way these items are allocated and used is set out below.


The huge investment challenge and the associated financing requirements for the next couple of years increase the importance of having good access to sources of funding. Alliander has set up its financing based on a number of principles, enabling it to cover its financing requirements in the best way possible for the next couple of years:

  • Cost-efficient. Alliander’s strong credit ratings, transparent reporting and regular visits to investors enable us to make optimum use of the public capital markets. This allows us to raise funding at the lowest possible costs.

  • Green. Alliander sees that, alongside a sound financial policy, shareholders and other investors are increasingly focusing on sustainability. Alliander endorses the importance of sustainability and so the company’s sustainability targets play a prominent role in the management of the business and external financing. Alliander is able to issue green bonds and green Euro Commercial Paper (ECP). The company also has a committed Sustainability Linked credit facility. This financing structure is a financial incentive for Alliander to make sustainable investments and to conduct its business sustainably. Our sustainability efforts have been rewarded with a sustainability classification of B+ by rating agency ISS ESG and a Low Risk classification by Sustainalytics. This puts us among the best-performing companies in our sector in the Netherlands regarding sustainability performance, according to these rating agencies. It allows Alliander to respond to growing demand for green debt instruments in the best way possible and, as a result, achieve favourable financing conditions.

  • Scalable and flexible. We are capable of upscaling our funding rapidly and cost-efficiently in order to meet our ever increasing financing needs. Apart from upscaled financing programmes, this also requires adequately proportioned liquidity lines. It will only remain possible to use our ECP programme to issue flexible and competitively priced short-term debt instruments as we see fit with the coverage offered by extra committed bank credit lines.

  • Guaranteed in the long term. To be able to finance our investments in the long term as well, agreements with the State regarding possible capital support were laid down in the Framework Agreement. Based on these agreements, accession of the State as a new shareholder will be possible under certain conditions. This guarantees a minimum credit rating of A- (minus), which provides a great deal of comfort to Alliander’s current and future financiers.

Our financial stakeholders

Alliander pursues an active policy of maintaining an open and constructive dialogue with shareholders, bondholders, financial institutions, credit rating agencies, sustainability rating agencies, analysts, and the media. We try to provide all stakeholders with timely and accurate relevant information on finances, strategy, risks, sustainability and other matters, in reports, in press releases, and in meetings, as well as by other means.


All of Alliander’s shares are held directly by Dutch provincial and municipal authorities. A full list of the shareholders can be found on The authorised share capital of Alliander N.V. is divided into 350 million shares with a nominal value of €5 each. All the shares are registered shares. As at 31 December 2023, there were 136,794,964 issued and paid-up shares. Contact with shareholders primarily takes place during the shareholders’ meetings. The company and its shareholders also meet outside of the shareholders’ meetings. A summary of the various shareholder dialogue structures can be found on the Alliander website.

Institutional investors

Institutional bond investors, such as asset managers, insurance companies and pension funds, provide a large part of our loan capital financing. These are mostly Europe-based professional players on the international financial markets. We keep existing and potential bondholders informed of the company’s financial position and results, as well as developments in the industry by actively engaging in Investor Relations activities in addition to complying with ordinary publication requirements. In this context we spoke with investors about the current figures for 2023 in London, Paris, Frankfurt and Amsterdam during an Investor Relations Roadshow in November 2023. This discussion included various other topics such as the progress made in the energy transition, the increase in investments, measures to expand our financing capacity, the convertible shareholder loan and the new regulatory period.


Alliander has access to a back-up credit facility of €900 million, committed by seven banks. In 2023, all the participating banks once again committed to the second extension to December 2028. The fee paid for this facility depends in part on Alliander’s performance in relation to a number of sustainability KPIs. As in previous years, no use was made of the credit facility during the past year. A €300 million loan arranged with the European Investment Bank was drawn down in 2017 and 2018. The loan becomes repayable in full in 2031.

In 2023, we also took out an additional €400 million in committed bilateral back-up credit facilities that will expire in 2024, with the option of extending them by one year to the end of 2025. These facilities were not drawn on during 2023.

Rating agencies

Alliander has credit ratings from S&P and Moody’s. These ratings comprise a long-term rating with an outlook and a short-term rating. The outlook is an indication of the expected change to the long-term rating over the next few years. S&P granted Alliander the status of Government Related Entity (GRE) on 14 February 2023. The consequence of this designation was that the standalone credit rating was moved up one notch. At the same time, S&P downgraded the standalone credit rating by one notch, so in the end the effect on the credit rating was neutral. On 13 October 2023, S&P published the ratings for Alliander N.V. on Credit Watch Positive. There were no changes to Moody’s credit rating. At year-end 2023, Alliander’s credit ratings were as follows:


Long term

Short term

Standard & Poor's

A+ (watch positive)



Aa3 (stable outlook)


On 2 February 2024, S&P confirmed that Alliander’s credit rating is A+ with a stable outlook. This means that the Credit Watch Positive status has been withdrawn.

During the reporting period, Alliander was in contact with the rating agencies on several occasions. We discussed the developments in the regulations, the increase in demand for electricity, the associated increase in investments and the measures taken to expand our financing capacity, including the Framework Agreement with the Dutch State. The recent financial performance figures and forecasts that Alliander provided on these occasions were taken into account by S&P and Moody’s when assessing Alliander’s creditworthiness.