Debt Investors

Overview

Xstrata’s Treasury Committee operates as a sub-committee of the Executive Committee of Xstrata (Schweiz) AG. Its membership consists of the Chief Executive, the Chief Financial Officer, the Group Treasurer and the Group Controller.

The Treasury Committee recommends group policy, which is approved by the Board, relating to all aspects of funding, risk management and cash management. Treasury is responsible for co-ordinating effectively relationships with banks, rating agencies and other financial institutions. Treasury monitors all significant treasury activities undertaken by Group companies and ensures compliance with Group policy.

Funding

The objective of Treasury is to ensure, with a high degree of confidence, the availability of funds throughout the industry or economic cycle and to retain financial flexibility to pursue growth opportunities. It is therefore essential that it maintains a strong investment grade credit rating.

The Group is generally exposed to US dollars through its revenue stream. The Group will seek to source debt capital in US dollars directly or by borrowing in other currencies and swapping them into US dollars, thus matching the negative exposure of debt service obligations against the positive exposure of revenue.