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Stora Enso’s funding strategy is based on the Group’s financial targets. Stora Enso should have access to sufficient and 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 Q3 2023, Stora Enso liquidity and funding position continued to be strong. Stora Enso has EUR 2.1 billion cash and cash equivalents at 30 September 2023. The company has EUR 800 million of committed undrawn credit lines: an undrawn committed credit facility of EUR 100 million and EUR 700 million Committed Revolving Credit Facility fully undrawn. Additionally, the company has access to EUR 1.10 billion statutory pension premium loans in Finland. Stora Enso has a good access to various funding sources.
|as at 30 Semptember 2023||EUR||USD||SEK|
|EUR 500 million 2026||USD 300 million 2036||SEK 3000 million 2024|
|EUR 300 million 2027|
|EUR 300 million 2028||SEK 3100 million 2025|
|EUR 500 million 2029|
|EUR 500 million 2030|
|Private placements||EUR 125 million 2025||SEK 1000 million 2026|
|EUR 25 million 2027|
|Pension commitment loans|
|as at 30 September 2023||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 Sustainability linked Revolving Credit Facility 2027 1)|||||
|EUR 100 million Bilateral Committed Credit Facility 2023 undrawn|
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.
|Issue / Maturity Dates||Description of Bond||Interest Rate %||Currency of Bond||Nominal Value Issued||Outstanding as at 30 September||Carrying Value as at 30 September|
|All liabilities are Held by the Parent company ||Currency million ||EUR million|
|2016 - 2023||Euro Medium Term Note||2.125||EUR||300||0||0|
|2019 - 2024||Euro Medium Term Note||1.875||SEK||1 750||1 750||152|
|2020 - 2025||Euro Medium Term Note||2.375||SEK||1 550||1 550||135|
|2023 - 2026||Euro Medium Term Note||4.000||EUR||500||500||499|
|2017 - 2027||Euro Medium Term Note||2.500||EUR||300||300||299|
|2018 - 2028||Euro Medium Term Note||2.500||EUR||300||300||299|
|2023 - 2029||Euro Medium Term Note||4.250||EUR||500||500||497|
|2020 - 2030||Euro Medium Term Note||0.625||EUR||500||500||496|
|2006 - 2036||Global 7.250% Notes 2036||7.250||USD||300||300||280|
|Total Fixed Rate Bond Loans||2 656|
|2019 - 2024||Euro Medium Term Note||Stibor + 1.45||SEK||1 250||1 250||108|
|2015 - 2025||Euro Medium Term Note||Euribor +2.25||EUR||125||125||125|
|2020 - 2025||Euro Medium Term Note||Stibor + 2.20||SEK||1 550||1 550||135|
|2019 - 2026||Euro Medium Term Note||Stibor + 1.60||SEK||1 000||1 000||87|
|2015 - 2027||Euro Medium Term Note||Euribor +2.35||EUR||25||25||25|
|Total Floating Rate Bond Loans||479|
|Total Bond Loans||3 136|
|Rating agency||Long / Short-term rating||Valid from|
|Fitch Ratings||BBB- (stable)||4 August 2023|
|Moody's||Baa3 (stable) / P-3||17 November 2023|
Stora Enso’s current credit ratings are: Baa3 with stable outlook from Moody’s and BBB- with stable outlook from Fitch Ratings. Both ratings correspond to an Investment Grade rating.
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.