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 a maximum of 25 percent 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) below.
The Group has unused long-term contractually agreed credit facilities of SEK 5.1 billion, of which SEK 1.1 billion is available until 2023 and SEK 4.0 billion until 2025. The credit facilities can be used for financing and as a liquidity reserve.
Holmen has a short- and long-term corporate credit rating from Standard & Poor’s. Holmen has a BBB+ long-term rating and A-2 short-term rating.