Company: BBU
Filing Date: 2025-04-10
Form Type: 20-F
Source: 0001628280-25-017216
Chunk: 146

Company: Brookfield Business Partners L.P.
Filing Date: 2025-04-10
Form: 20-F
Item: Item 5
Chunk 146
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063                              4,738  
  Securitization program (2)                                                                    3,284                              2,705  
  Project financing                                                                             1,018      937                            
  Total non-recourse borrowings in subsidiaries of the partnership      $                      36,720      $                      40,809  

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(1) Includes borrowings made under subscription facilities of Brookfield-sponsored private equity funds.

(2) Our securitization program is related to the securitization of residential mortgages at our Australian asset manager and lender, and securitization at our Indian non-banking financial services operation.

The partnership has financing arrangements within its operating businesses that trade in public markets or are held at major financial institutions. The financing arrangements of the partnership’s operating businesses totaled $36,720 million as at December 31, 2024, compared to $40,809 million as at December 31, 2023. The decrease of $4,089 million was primarily due to repayments of borrowings made under subscription facilities of Brookfield-sponsored private equity funds, combined with repayments in our advanced energy storage operation, classification of borrowings to liabilities held for sale within our offshore oil services and the disposition of our road fuels operation.

As at December 31, 2024, we have $38,862 million in total borrowings with an additional capacity of $7,729 million in undrawn credit facilities at the corporate and subsidiary level. This debt has varying maturities ranging from less than one year to 57 years. The weighted average maturity of total borrowings as at December 31, 2024 was 6.2 years and the weighted average interest rate on debt outstanding was 7.6%, including the impact of hedges. Approximately 75% of our non-recourse borrowings are either fixed or hedged through derivatives or naturally hedged within our operations.

  Brookfield Business Partners      97  

The use of credit facilities, term loans and debt securities is primarily related to ongoing operations, capital expenditures and to fund acquisitions. Interest rates charged on these facilities are based on market interest rates. The majority of borrowings drawn are not subject to financial maintenance covenants, however, some are subject to fixed charge coverage ratios, leverage ratios and minimum equity or liquidity covenants. As at December 31, 2024, the partnership’s operations were in compliance with or had obtained waivers related to all material covenant requirements and we continue to work with our businesses to