Credit facilities

Fortum's business is capital intensive and the Group has a regular need to raise financing. Fortum has a diversified loan portfolio mainly consisting of long-term financing in EUR and SEK currencies. Long-term financing is primarily raised by issuing bonds under Fortum’s Euro Medium Term Note programme as well as through bilateral and syndicated loan facilities from a variety of different financial institutions. Financing is primarily raised on parent company level and distributed internally through various internal financing arrangements.

Debt structure and maturity profile

Breakdown of Group debt on 31 March 2018 Maturity profile and average interest rate on 31 March 2018

Breakdown og debt

maturity

Total interest-bearing debt EUR 4,403 million

  • Average interest 3.4% (2017: 3.6%)

  • Portfolio mainly in EUR and SEK  with average interest cost 2.3% (2017: 2.4%)

  • EUR 775 million (2017: 773) swapped to RUB, average interest cost including cost for hedging 8.6% (2017: 9.5%)

Liquidity on 31 March 2018

Short term financing, MEUR Remaining Outstanding Total
Commercial paper programmes      
Finnish CP programme 1 000 0 1 000
SEK 5,000 M Swedish CP programme 486 0 486
  1,486 0 1,486
Liquid Funds and committed credit lines Available Outstanding Total
Committed credit lines      
Short term (valid until further notice) 50 0 50
Long term (valid until June 2021, excl. committed credit facilities for Fortum's offer for Uniper shares) 1,750 0 1,750
  1,800 0 1,800
Liquid funds 3,504    
   of which in Russia 354    
Total liquid funds and committed financing 5,304    

Bonds issued

EMTN programme of EUR 8 billion
31 March 2018

Notes Currency Amount in EUR Carrying amount Interest rate, % Maturity ISIN code Rating Listing
Fixed rate bearer notes EUR 750,000,000 750,000,000 748,664,286 6.000 20.03.2019 XS0418729934 yes yes
Fixed rate bearer notes EUR 500,000,000 500,000,000 517,388,220 4.000 24.05.2021 XS0629937409 yes yes
Fixed rate bearer notes EUR 1,000 000 000 1,000 000 000 1,057,157,416 2.250 06.09.2022 XS0825855751 yes yes
Fixed rate bearer notes EUR 100,000,000 100,000,000 96,565,777 3.500 03.06.2043 XS0939100524 no yes
  EUR 2,350,000,000 2,350,000,000 2,419,775,699          
Floating rate bearer notes SEK 1,000,000,000 97,235,592 97,235,592 Floating 27.06.2023 XS0945849577 no no
  SEK 1,000,000,000 97,235,592 97,235,592          
Total     2,447,235,592 2,505,499,464          

Terms and conditions

Terms and conditions for these bonds issued under the EMTN programme can be found on the Luxembourg Stock Exchange.

Fortum Oyj's bonds or credit facilities do not include any financial covenants such as restrictions on the amount of debt or limits on ratios relating to interest cover or capitalisation. The notes listed above have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States or to or for the account or benefit of U.S. persons except pursuant to an exception from such registration.

Credit rating

Fortum's current rating and outlook

Rating agency Credit rating and outlook Valid from
Standard & Poor's BBB, negative 16 February 2018
Fitch Ratings BBB+, watch negative 20 March 2018

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Fortum's rating history

Rating history