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

*Including IFRS 16 from Q1/2019 onwards

Cash flow, financing and liquidity (from Q4/2019 report)

Operating cash flow for the full year 2019 was SEK 5,194 (5,969) million. Lower operating profit was partly offset by release of working capital.

Net cash flow amounted to SEK -289 (3,435) million. Compared with the full year 2018, net cash flow was affected negatively by the acquisitions of Sanistål, Abraservice and Piristeel, as well as by a higher dividend to shareholders. Total capital expenditure, including acquisitions and divestments, was SEK 4,013 (2,275) million. Net debt at December 31, 2019 was SEK 11,696 (8,582) million. The net debt/equity ratio was 19%. Excluding IFRS 16, the net debt/equity ratio was 16% (14%).

The term to maturity of the total loan portfolio at December 31 averaged 7.1 (6.5) years, with an average fixed interest period of 1.1 (1.1) years.

Cash and cash equivalents were SEK 3,591 (2,598) million and non-utilized credit facilities were SEK 6,727 (7,250) million, which combined corresponds to 13% (15%) of full-year sales.

Debt structure on (at Dec 31, 2019)

Net debt and net debt/equity ratio

Debt maturity (at Dec 31, 2019)

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

EMTN Prospectus 2019
EMTN Prospectus 2018
EMTN Prospectus 2017
EMTN Prospectus 2016
EMTN Prospectus 2015
EMTN Prospectus 2014
Prospectus Amendment
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.
Standard & Poors' Ratings Direct, Research update 2019-05-27
Standard & Poors' Ratings Direct, Research update 2018-06-25
Standard & Poors' Ratings Direct, Research update 2018-02-15
Standard & Poors' Ratings Direct, Research update 2017-10-31
Standard & Poors' Ratings Direct, Research update 2017-03-22
Standard & Poors' Ratings Direct, Research update 2016-06-08
Standard & Poors' Ratings Direct, Research Update 2016-02-22
Standard & Poor's RatingsDirect, Research Update 2015-05-29
Standard & Poor's RatingsDirect Research Update 2015-12-21
Standard & Poor's RatingsDirect, Bulletin 2014-01-22
Standard & Poor's RatingsDirect, Research Update 2013-11-12