Holmen’s financing activities are centralised within Group Finance based at the headquarters in Stockholm. As part of Holmen’s strategy, it is stated that the Group shall have a strong financial position that provides financial stability to enable the Group to make correct and long-term business decisions relatively independently of the state of the economy and external financing possibilities. The target for the debt/equity ratio is 0.3-0.8 and the strategic planning includes harmonising the financial position with this target.
For parts of Holmen’s financing, debt programmes, where commercial papers and bonds can be issued on the Swedish capital market, are utilised. The commercial paper programme has a limit of MSEK 6 000 and papers with a duration of up to one year may be issued in both Swedish krona and euro. Holmen’s Medium Term Note programme, where bonds in krona or euro with durations between one and fifteen years may be issued, has a limit of MSEK 6 000. More information about the programme can be found in the prospectus (in Swedish) to the right.
Holmen has, together with a group of banks, a committed credit facility of MEUR 400, available until January 2016. In addition, Holmen also has a commited credit facility of MSEK 1 300 running to 2016 and another of MSEK 570, running to 2017. The credit facilities can be used for financing and as a liquidity reserve and may be utilised provided the debt/equity ratio is below 1.25. The Group’s debt/equity ratio on March 31 2013 was 0.31.
Holmen has a short- and long-term corporate credit rating from Standard & Poor’s. Holmen has a BBB long-term rating with stable outlook and A-2/K-2 short-term rating.