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Debt
 12 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
Debt DEBT
The table below summarizes our total outstanding debt as reflected on our consolidated balance sheets:
30 September20232022
Short-term borrowings(A)
$259.5 $10.7 
Current portion of long-term debt615.0 548.3 
Long-term debt9,280.6 6,433.8 
Long-term debt – related party150.7 652.0 
Total Debt$10,305.8 $7,644.8 
(A)Balances reflect bank obligations with weighted average interest rates of 5.2% and 4.2% as of 30 September 2023 and 2022, respectively. The increase from fiscal year 2022 primarily relates to commercial paper.
Related Party Debt
Our related party debt includes loans with our joint venture partners. Total debt owed to related parties was $328.3 and $781.0 as of 30 September 2023 and 30 September 2022, respectively, of which $177.6 and $129.0, respectively, was reflected within "Current portion of long-term debt" on our consolidated balance sheets. During the third quarter of fiscal year 2023, outstanding shareholder loans to the NGHC joint venture were converted to equity in the entity. Refer to Note 3, Variable Interest Entities, for additional information on this joint venture. The remaining related party debt balance as of 30 September 2023 primarily includes a loan with Lu’An Clean Energy Company.
Debt Covenants
Various debt agreements to which we are a party include financial covenants and other restrictions, including restrictions pertaining to the ability to create property liens and enter into certain sale and leaseback transactions. As of 30 September 2023, we were in compliance with all the financial and other covenants under our debt agreements.
Summary of Long-Term Debt Instruments
The table below summarizes the coupon interest rates, fiscal year maturities, and carrying amounts of our long-term debt, including current portion and amounts owed to related parties. Variable rates are determined as of 30 September 2023.
30 SeptemberMaturities20232022
Payable in U.S. Dollars
Medium-term Notes (weighted average rate)
Series E 7.6%2026$17.2 $17.2 
Senior Notes
Note 2.75%
2023— 400.0 
Note 3.35%2024400.0 400.0 
Note 1.50%2026550.0 550.0 
Note 1.85%2027650.0 650.0 
Note 2.05%2030900.0 900.0 
Note 4.800%2033600.0 — 
Note 2.70%2040750.0 750.0 
Note 2.80%2050950.0 950.0 
Other (weighted average rate)
Variable-rate industrial revenue bonds 3.55%2035 to 2050618.9 618.9 
Other variable-rate 6.78%2024 to 203241.4 41.4 
Payable in Other Currencies
Eurobonds 1.000%2025317.2 294.1 
Eurobonds 0.500%2028528.6 490.1 
Eurobonds 0.800%2032528.6 490.1 
Eurobonds 4.000%2035740.1 — 
Saudi Riyal Loan Facility variable-rate 4.10%2023— 195.6 
Saudi Riyal Loan Facility variable-rate 7.00%2027451.1 — 
Saudi Riyal Loan Facility 2.00%2034192.1 — 
New Taiwan Dollar Loan Facility 1.86%2024 to 2028167.5 189.0 
New Taiwan Dollar Loan Facility 2.66%2026 to 2029186.1 31.5 
New Taiwan Dollar Loan Facility variable-rate 2.55%2026 to 20303.1 — 
Other2023— 0.1 
Related Party Debt
Chinese Renminbi 5.5%2024 to 2027313.5 321.5 
Chinese Renminbi 5.7%203314.8 12.2 
Non-Recourse Debt Associated With NGHC(A)
2027 to 20531,364.8 — 
Finance Lease Obligations (weighted average rate)
Foreign 11.4%2025 to 20367.5 7.6 
Total Principal Amount$10,292.5 $7,309.3 
Plus: Related party shareholder loans to NGHC— 447.3 
Less: Unamortized discount and debt issuance costs(165.7)(45.4)
Less: Fair value hedge accounting adjustments(B)
(80.5)(77.1)
Total Long-term Debt$10,046.3 $7,634.1 
Less: Current portion of long-term debt(615.0)(548.3)
Less: Long-term debt – related party(150.7)(652.0)
Long-term Debt$9,280.6 $6,433.8 
(A)Refer to the "NEOM Green Hydrogen Project Financing" section below for additional information.
(B)Refer to Note 14, Financial Instruments, for additional information.
Principal maturities of long-term debt, including current portion and amounts owed to related parties, in each of the next five years and thereafter are as follows:
2024
$615.3 
2025419.5 
2026701.4 
20271,362.8 
2028632.2 
Thereafter6,561.3 
Total$10,292.5 
Interest
The table below reconciles interest incurred to interest expense as presented on our consolidated income statements. Capitalized interest represents the portion of interest incurred that we include in the cost of new plant and equipment that we build during the year.
Fiscal Year Ended 30 September202320222021
Interest incurred$292.9 $169.0 $170.1 
Less: Capitalized interest115.4 41.0 28.3 
Interest expense$177.5 $128.0 $141.8 
Cash paid for interest, net of amounts capitalized, was $131.5, $128.5, and $150.4 in fiscal years 2023, 2022, and 2021, respectively.
Green Financing
On 3 March 2023, we issued our inaugural multi-currency green bonds under our new Green Finance Framework, which was established to further align our financings with our sustainability strategy. The concurrent offerings included U.S. Dollar- and Euro-denominated fixed-rate notes with aggregate principal amounts of $600 and €700 million, respectively. The proceeds from the notes were reduced by deferred financing charges and discounts of approximately $15, which are being amortized over the life of the underlying bonds.
Credit Facilities
2021 Credit Agreement
We have a five-year $2.75 billion revolving credit agreement maturing 31 March 2026 with a syndicate of banks (the “2021 Credit Agreement”), under which senior unsecured debt is available to us and certain of our subsidiaries. The 2021 Credit Agreement provides a source of liquidity and supports our commercial paper program. No borrowings were outstanding under the 2021 Credit Agreement as of 30 September 2023.
The only financial covenant in the 2021 Credit Agreement is a maximum ratio of total debt to total capitalization (equal to total debt plus total equity) not to exceed 70%. The 2021 Credit Agreement defines total debt as the aggregate principal amount of all indebtedness, excluding limited recourse debt of any project finance subsidiary. Accordingly, this calculation does not consider borrowings associated with NGHC.
Foreign Credit Facilities
We also have credit facilities available to certain of our foreign subsidiaries totaling $1,596.8, of which $1,041.4 was borrowed and outstanding as of 30 September 2023. The amount borrowed and outstanding as of 30 September 2022 was $457.5. The increase from 30 September 2022 was driven by borrowings on a new variable-rate Saudi Riyal loan facility that matures in October 2026. The interest rate on the facility is based on SAIBOR plus an annual margin of 1.35%. We entered into this facility in October 2022 and utilized a portion of the proceeds to repay a variable-rate 4.10% Saudi Riyal loan facility of $195.6, which was presented within long-term debt on our consolidated balance sheet as of 30 September 2022.
NEOM Green Hydrogen Project Financing
In May 2023, NGHC secured non-recourse project financing of approximately $6.1 billion, which is expected to fund about 73% of the NEOM Green Hydrogen Project and will be drawn over the construction period. At the same time, NGHC secured additional non-recourse credit facilities totaling approximately $500 primarily for working capital needs. As of 30 September 2023, the joint venture had borrowed $1.4 billion of the available financing. For additional information, including details of related debt instruments, refer to Note 3, Variable Interest Entities.