Company: BBU
Filing Date: 2025-04-10
Form Type: 20-F
Source: 0001628280-25-017216
Chunk: 518

Company: Brookfield Business Partners L.P.
Filing Date: 2025-04-10
Form: 20-F
Item: Item 19
Chunk 518
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16            476                        492                                    487                                
  Interest rate derivatives                                            8,520                                 10,482                                 13,200  
                                         $             $              14,396      $                          19,147      $                          19,460  

NOTE 28. FINANCIAL RISK MANAGEMENT

Capital Management

The capital structure of the partnership consists of corporate borrowings and non-recourse borrowings in subsidiaries of the partnership, offset by cash and cash equivalents and equity.

  (US$ MILLIONS, except as noted)                                     2024                      2023              
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Corporate borrowings                                                   $      2,142              $      1,440   
  Non-recourse borrowings in subsidiaries of the partnership        36,720                    40,809              
  Cash and cash equivalents                                       ( 3,239)                  ( 3,252)              
  Net debt                                                          35,623                    38,997              
  Total equity                                                      17,308                    18,532              
  Total capital                                                          $      52,931             $      57,529  
  Net debt-to-capital ratio                                             67      %                 68      %       

The partnership manages its debt exposure by financing its operations with non-recourse borrowings in subsidiaries of the partnership, ensuring a diversity of funding sources as well as managing its maturity profile. The partnership also borrows in the currencies where its subsidiaries operate, where possible, in order to mitigate currency risk.

The partnership’s financing plan is to fund its recurring growth capital expenditures with cash flows generated by operations after maintenance capital expenditures, as well as debt financing that is sized to maintain its credit profile. To fund large-scale development projects and acquisitions, the partnership evaluates a variety of capital sources including proceeds from selling non-core and mature assets, equity and debt financing. The partnership seeks to raise additional equity if the partnership believes it can earn returns on these investments in excess of the cost of the incremental capital.

As disclosed within Note 18, the partnership has various credit facilities in place. In certain cases, the facilities may have financial covenants which are generally in the form of interest coverage ratios and leverage ratios. The partnership does not have any market capitalization covenants attached to any of its borrowings and the partnership is in compliance with or has obtained waivers related to its material covenant requirements.

  Brookfield Business Partners      F-73  

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