Stora Enso’s funding strategy is based on the Group’s financial targets. Stora Enso should have access to sufficient competitively priced funding at any time to be able to pursue its strategy and achieve its financial targets. In order to achieve this, the emphasis is on capital markets funding. Stora Enso strives to build confidence and a track record with fixed-income investors by being informative and transparent.
The debt structure of Stora Enso is focused on capital markets, whereas banks are utilised primarily to provide back-up facilities. To balance exposures, funding is obtained in the currencies of the Group’s investments and assets (primarily USD, EUR and SEK). Commercial paper markets are used for short-term funding and liquidity management.
|Debt structure as at 31 December 2017|
|Public issues||EUR 112 million 2018||USD 300 million 2036|
|EUR 178 million 2019|
|EUR 300 million 2023|
|EUR 300 million 2027|
|Private placements||EUR 175 million||USD 50 million|
|Financial institutions||EUR 165 million||USD 845 million||CNY 1 107 million|
|Pension commitment loans||EUR 2 million|
|Debt Programmes and Credit Facilities|
|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 600 million Sustainability linked Revolving Credit Facility 20231|
|1 Undrawn committed credit facility EUR 600 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.|
The present ratings and outlooks from Moody’s and Standard & Poor’s (S&P) are shown below.
|Ratings as at 31 December 2017|
|Rating agency||Long/short-term rating||Valid from|
|Standard & Poor's||BB+ (stable)/ B||21 August 2017|
|Moody's||Ba2 (positive) / NP||4 August 2016|
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.