Maturity Profile

Funding risk

By funding risk is meant the risk that funding of the Group’s capital requirement will be impeded or become more costly. To mitigate funding risk the Group strives to maintain a balanced maturity structure, a good liquidity reserve, and diversified borrowing. This creates a preparedness to take necessary alternative actions to raise capital should this be necessary.

Indutrade takes a central approach to the Group’s funding. In principle, all external funding is conducted by the Parent Company, which then funds the Group’s subsidiaries, both in and outside Sweden, in local currency. Cash pools are established in Sweden, Finland, Norway, Denmark, Germany, the Netherlands and the UK.

Indutrade has had a commercial paper programme in place since 2014. The framework of the programme was expanded in 2016 from SEK 1,500 million to SEK 2,000 million. On 31 December 2017, the outstanding volume of commercial paper was SEK 1,600 million.

At year-end 2017 the Group had SEK 464 million (332) in cash and cash equivalents and SEK 2,752 million (2,854) in unutilised overdraft facilities. 

Maturity profile for the Group, 31 December 2017:

 

The Group strives to maintain a reasonable balance between equity, debt financing and liquidity, to enable the Group to secure funding at a reasonable capital cost. The Group’s goal is that the net debt/equity ratio, defined as interest-bearing liabilities less cash and cash equivalents in relation to equity, normally should not exceed 100%. At year-end the debt/equity ratio was 74%  (82%).