Debt investors

Debt investors

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.

Stora Enso’s debt structure is focused on the capital markets and commercial banks. Stora Enso maintains consistent dialogue with fixed-income community with informative and transparent communication and meetings in conferences and roadshows. The Company's Treasury function is responsible for fixed income investor communication.

Funding is obtained in the currencies of the Group’s investments and assets (primarily CNY, EUR, SEK and USD). Commercial paper markets are used for short-term funding and liquidity management.

In Q1 2023, Stora Enso liquidity and funding position continued to be strong. Stora Enso has EUR 1.2 billion cash and cash equivalents at 31 March 2023. During Q2 2022 Stora Enso arranged bilateral loans with commercial banks up to 250 million. During Q4 Stora Enso arranged additional bilateral loans of EUR 300 million with three year maturity and extension options. The company has EUR 900 million of committed undrawn credit lines: an undrawn committed credit facility of EUR 200 million and EUR 700 million Committed Revolving Credit Facility fully undrawn. Additionally, the company  has access to EUR 1.05 billion statutory pension premium loans in Finland. Stora Enso has a good access to various funding sources.  

1) Undrawn committed credit facility EUR 700 million. Part of the pricing for the facility agreement is based on Stora Enso's Science Based Targets to combat global warming by reducing greenhouse gases, including CO2.

Stora Enso has integrated sustainability agenda to its funding and financial services. The Group has the long-term aim to secure funding partners that have sustainability as a fundamental part of their agenda. We aim to influence and develop the financial markets to ensure that sustainability becomes an integral part of decisions and credit evaluation. For more information, please see Stora Enso’s Annual Report 2022 or visit our website storaenso.com/investors.

Rating strategy

Stora Enso’s current credit ratings are: Baa3 with positive outlook from Moody’s and BBB- with positive outlook from Fitch Ratings. Both ratings correspond to an Investment Grade rating, and there were no changes in the ratings up to 31st December 2022.

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 maintained with the rating analysts.

Read more about debt and loans in Note 26 of our Annual Report 2022.