Debt financing

SSAB's funding is focused on supporting the Group’s strategy and covering the needs for financing within the framework of the Group's financial policy. The funding is primarily executed through the parent company. In order to minimize the refinancing risk, the objective is that the debt should have an even maturity profile. Short-term funding is primarily obtained through the commercial paper markets in Sweden and Finland. SSAB has a strong and supportive bank group providing committed back-stop facilities to secure the short-term funding and liquidity needs.  In order to secure access to competitively priced funding in the relevant markets, SSAB strives to be transparent and informative toward the investor community.

 

Key figures     2020  2019  2018  2017  2016  2015  2014
Net debt* SEK million 12,692  11,696  8,582  11,574 17,887
23,156
24,674
Net debt/equity ratio* % 20 19  14  22  34 52 56
Average term on the loan portfolio years 5.2 7.1  6.5  5.5  5.1 4.6 3.9
Averaged fixed interest term years 0.8 1.1  1.1  1.1  0.8 1.1
1.2
Non-utilized credit facilities SEK million 15,108  6,727  6,992  8,263  7,096 8,308
8,714
Cash and cash equivalents SEK million 7,012  3,591  2,598  4,249  3,879 2,711
3,014

*Including IFRS 16 from Q1/2019 onwards

 

Cash flow, financing and liquidity (from Q1/2020 report)

Operating cash flow for the first quarter of 2020 amounted to SEK -411 (1,139) million. Compared with the first quarter of 2019, cash flow was impacted by lower operating profit and higher tied up working capital.

Net cash flow amounted to SEK -751 (503) million. Net debt at March 31, 2020 was SEK 12,692 (10,114) million.

The term to maturity of the total loan portfolio at March 31, 2020 averaged 5.2 (6.3) years, with an average fixed interest period of 0.8 (1.0) years.

Cash and cash equivalents were SEK 7,012 (4,873) million and non-utilized credit facilities were SEK 15,108 (7,091) million, which combined corresponds to 29% (18%) of rolling 12-month revenue.

Debt structure on (at March 31, 2020)

Debt structure on

Net debt and net debt/equity ratio

Debt maturity (at March 31, 2020)

Debt maturity

Debt cost and duration

Debt cost and duration

Debt programs

SSAB’s funding is conducted primarily through the bank market and existing note and commercial paper programs. For borrowing for terms of up to ten years, a European Medium Term Note program (EMTN) is used, while Swedish and Finnish commercial paper programs are used for borrowing for shorter terms. The program limit of the EMTN program is EUR 2,000 million. The Swedish commercial paper program has a limit of SEK 5,000 million and the Finnish commercial paper program has a limit of EUR 500 million.

Main financial arrangements 
Total amount
European medium Term Note
program (EMTN)
EUR 2,000 million
Swedish commercial paper program
SEK 5,000 million
Finnish commercial paper program
EUR 500 million

Related documents

PDF 1,12 Mb
EMTN Prospectus 2019
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EMTN Prospectus 2018
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EMTN Prospectus 2017
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EMTN Prospectus 2016
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EMTN Prospectus 2015
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EMTN Prospectus 2014
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Prospectus Amendment
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Swedish Commercial Paper Program

Credit ratings

On May 27, 2019 S&P Global Ratings raised its long-term corporate credit rating on SSAB to “BB+” from ” BB”.
At the same time, S&P affirmed the “B” short-term corporate credit rating. The outlook is stable.
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Standard & Poor's RatingsDirect, Research Update 2013-11-12