Credit facilities and rating

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 30 September 2018 Maturity profile and average interest rate on 30 September 2018

Breakdown of debt

maturity

Total interest-bearing debt EUR 5,975 million

  • Average interest 2.4% (2017: 3.6%)
  • Portfolio mainly in EUR and SEK with average interest cost 1.6% (2017: 2.4%)
  • EUR 716 million (2017: 773) swapped to RUB, average interest cost including cost for hedging 7.9% (2017: 9.5%)

Liquidity on 30 September 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 951 19 970
  1,951 19 1,970
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 731    
   of which in Russia 289    
Total liquid funds and committed financing 2,531    

Bonds issued

EMTN programme of EUR 8 billion
30 September 2018

Currency/Million EUR million Carrying amount, EUR million Interest % Maturity date ISIN code Rating/listing
EUR 750 750 749 6.000 20.03.2019 XS0418729934 yes/yes
EUR 500 500 514 4.000 24.05.2021 XS0629937409 yes/yes
EUR 1,000 1,000 1,036 2.250 06.09.2022 XS0825855751 yes/yes
EUR 100 100 97 3.500 03.06.2043 XS0939100524 no/yes
SEK 1,000 97 97 Floating 27.06.2023 XS0945849577 no/no
TOTAL 2,447 2,493        

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, stable 28 June 2018

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Rating history