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.

Breakdown of loans on 31 March 2021

Donut graph: EUR Bonds 42%, SEK Bonds 1%, Financial institutions 26%, Other long-term debt 16%, and Short-term 15%

EUR Bonds EUR 4,139 million
SEK Bonds EUR 98 million
Financial institutions EUR 2,562 million
Other long-term debt EUR 1,647 million
Short-term debt EUR 1,465 million
Total EUR 9,910 million

Loan portfolio and average interest rate on 31 March 2021

Bard diagram of maturity of group loans as per 31 March 2021. In 2021, EUR 1 915 million will mature, in 2022 EUR 3 150 million, 2023 EUR 1 114 million, 2024 EUR 318 million, 2025 EUR 18 million, 2026 and later EUR 3 395 million, which totals EUR 9 910 million.

Total loans EUR 9,910 million

  • Average interest for EUR loans 0.9% (2020: 0.9%).
  • Average interest for Fortum Group loan portfolio including derivatives hedging financial net was 1.5% (2020: 1.5%). EUR 652 million (2020: 634) was swapped to RUB with average interest 6.5% (2020: 6.2%) including cost for hedging.

Liquidity on 31 March 2021

Short-term financing, EUR million        
Commercial Paper Programmes Total amount Outstanding Remaining  
Finnish CP Programme, EUR 1,000 million 1,000 276 724  
Swedish CP Programme, SEK 10,000 million 977 235 741  
Uniper CP Programme, EUR 1,800 million 1,800 125 1,675  
Total 3,777 636 3,140  
         
Liquid Funds and Committed Credit Lines        
Committed Credit Lines Total amount Outstanding Remaining Maturity
Short-term        
Bilateral Overdraft Facilities, EUR 100 million 100 0 100 Valid until further notice
Syndicated Credit Facility, EUR 1,450 million 1,450 0 1,450 November 2021*
Long-term        
Syndicated Credit Facility, EUR 1,750 million 1,750 0 1,750 June 2023
Uniper Syndicated Credit Facility, EUR 1,800 million  1,800 0 1,800 September 2025
Total 5,100 0 5,100  
         
Liquid funds Total amount      
In Fortum Corporation 2,681      
In Uniper 917      
Total 3,598      
of which in Russia 410      
         
Total Liquid Funds and Committed Financing 8,698      

* With an option to extend the maturity by one year.

EMTN programme of EUR 8 billion as of 31 March 2021

Notes Amount Carrying amount Interest rate Maturity Rating/Listing
Fixed rate MEUR MEUR      
XS0629937409 500 501 4,000 % 5/2021 Yes/Yes
XS0825855751 1 000 1 021 2,250 % 9/2022 Yes/Yes
XS1956028168 1 000 999 0,875 % 2/2023 Yes/Yes
XS1956037664 750 762 1,625 % 2/2026 Yes/Yes
XS1956027947 750 760 2,125 % 2/2029 Yes/Yes
XS0939100524 100 97 3,500 % 6/2043 No/Yes
           
Floating rate MSEK MEUR      
XS0945849577 1,000 98 Floating 6/2023 No/No
           
Total   EUR 4,237 million      

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

Key ratios 2014-2020

EUR million or as indicated 2020 2019 2018 2017 2016 2015 2014
Capital employed 26,239 19,929 18,170 18,172 18,649 19,870 17,918
Interest bearing net-debt N/A 5,260 5,509 988 -48 -2,195 4,217
Net cash from operating activities 2,555 1,575 804 993 621 1,381 1,762
ROCE, % N/A 10.0 6.7 7.1 4.0 22.7 19.5
Interest coverage 27.3 8.0 10.0 8.7 4.6 27.6 19.9
Interest coverage including capitalised borrowing costs 18.6 7.5 9.2 7.8 4.1 21.5 15.7
Funds from operations/interest-bearing net debt, % N/A 32.2 26.8 83.9 -1,503.4 -59.7 42.9
Gearing, % 45 40 46 7 0 -16 39
Comparable net debt/EBITDA N/A 3.0 3.6 0.8 0.0 -1.7 2.3

Fortum's current credit rating

Rating agency Credit rating Rating valid  from Latest report
Standard & Poor's BBB/Outlook Stable 5 July 2021 Download
Fitch Ratings BBB/Outlook Stable 28 June 2021 Download

The older credit rating reports are available in reports and presentations archive.

Fortum's credit rating history

Line diagram showing rating history 2004-2021. In 209-2012 credit rating was at level A, in 2013-2015 at level A-, in 2016-2017 at level BBB+ and since 2018 both for S&P and Fitch have rated Fortum at level BBB.