Stora Enso’s funding strategy is based on the group’s financial targets. Stora Enso should have access to sufficient competitively priced funding at any time to be able to pursue its strategy and achieve its financial targets.
In order to achieve this, the emphasis is on capital markets funding. Stora Enso strives to build confidence and a track record with fixed-income investors by being informative and transparent.
The debt structure of Stora Enso is focused on capital markets, whereas banks are utilised primarily to provide back-up facilities. To balance exposures, funding is obtained in the currencies of the group’s investments and assets (primarily USD, EUR and SEK).
Commercial paper markets are used for short-term funding and liquidity management.
Debt structure
| as at 31 Dec 2016 | EUR | USD | SEK |
|---|
| Public issues | EUR 212 million 2018 EUR 428 million 2019
EUR 300 million 2023
| USD 300 million 2036
| SEK 480 million 2017 SEK 2 060 million 2017
|
|---|
| Private placements | EUR 175 million | USD 50 million | |
|---|
| Financial Institutions | EUR 430 million | USD 990 million | |
|---|
| Pension commitment loans | EUR 6 million | | |
|---|
Debt Programmes and Credit Facilities
| | EUR | USD | SEK |
|---|
| Commercial Paper Programmes | Finnish Commercial Paper Programme EUR 750 million | | Swedish Commercial Paper Programme
SEK 10 000 million |
|---|
| EMTN (Euro Medium-Term Note Programme) | EUR 4 000 million | | |
|---|
| Back-up
facility
| EUR 700 million Syndicated Multi-Currency Revolving Credit Facility
2019 1)
| | |
|---|
1) Undrawn committed credit facility EUR 700 million.
Bond loans in non-current debt
Issue/
Maturity Dates |
Description of Bond |
Interest Rate % |
Currency of Bond |
Nominal Value Issued |
Outstanding
As at 31 December |
Carrying Value
As at 31 December |
|---|
| | | 2016 | 2015 | 2016 | 2015 |
|---|
All liabilities are Held by the Parent company | Currency million | EUR million |
|---|
Fixed rate |
|---|
1993 - 2019
|
Series C Senior Notes 2019
| 8.600
| USD
| 50 | 50 | 50 | 47 | 47 |
|---|
|
2006 - 2036 |
Global 7.250% Notes 2036 |
7.250 |
USD | 300 |
300 |
300 |
281 |
272 |
|---|
|
2012 - 2017 |
Euro Medium Term Note |
5.750 |
SEK |
500 |
480 |
500 |
50 |
54 |
|---|
|
2012 - 2018 |
Euro Medium Term Note |
5.000 |
EUR |
500 |
212 |
500 |
212 |
498 |
|---|
|
2012 - 2019 |
Euro Medium Term Note |
5.500 |
EUR |
500 | 428 |
500 |
427 |
498 |
|---|
| 2016-2023 | Euro Medium Term Note | 2.125 | EUR | 300 | 300 | - | 298 | - |
|---|
Total Fixed Rate Bond Loans |
1315 |
1369 |
|---|
Floating rate |
|---|
|
2006 - 2018 |
Euro Medium Term Note |
Euribor +0.96 | EUR |
25 |
25 |
25 |
25 |
25 |
|---|
|
2006 - 2018 |
Euro Medium Term Note |
Euribor +0.72 |
EUR |
50 | - |
50 |
- |
50 |
|---|
2012 - 2017 | Euro Medium Term Note | Stibor +3.90 | SEK | 2200 | 2060 | 2200 | 215 | 240 |
|---|
| 2015 - 2025 | Euro Medium Term Note | Euribor +2.25 | EUR | 125 | 125 | 125 | 125 | 125 |
|---|
| 2015 - 2027 | Euro Medium Term Note | Euribor +2.35 | EUR | 25 | 25 | 25 | 25 | 25 |
|---|
Total Floating Rate Bond Loans | 390 | 465 |
|---|
Total Bond Loans | 1705 | 1834 |
|---|
Rating strategy
Stora Enso Group’s
target is to have at least one public credit rating with long-term ambition to
return to investment grade credit rating. The present rating and outlook from
Moody's and Standard & Poor's (S&P) are shown below. For older reports please visit
Download Center and select Rating reports.
| Rating agency | Long / Short-term rating | Valid from |
|---|
| Standard & Poor's | BB+ (stable) / B | 21 August 2017 |
|---|
| Moody's | Ba2 (positive) / NP | 4 August 2016 |
|---|
Stora Enso’s goal is to ensure that rating agencies continue to be comfortable with Stora Enso’s strategy and performance. The company's strategy is to achieve liquidity well in line with the comfort level of the agencies. Review meetings are arranged with the Stora Enso management annually, and regular contact is kept with the rating analysts.
