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 December 2020

Pie graph of breakdown of loans

EUR Bonds 4,158 MEUR (43%)

SEK Bonds 100 MEUR (1%)

Financial institutions 2,576 MEUR (27%)

Other long-term debt 1,591 MEUR (17%)

Short-term debt 1,182 MEUR (12%)

Total 9,607 MEUR

Debt maturity profile 31 December 2020

Maturity profile 31122020

Total loans EUR 9,607 million

  • Average interest for EUR loans 0.9% (2019: 0.9%).
  • Average interest for Fortum Group loan portfolio including derivatives hedging financial net was 1.5% (2019: 2.3%). EUR 634 million (2019: 787) was swapped to RUB with average interest 6.2% (2019: 7.8%) including cost for hedging.

 

Liquidity on 31.12.2020

Short-term financing, EUR million        
Commercial Paper Programmes Total amount Outstanding Remaining  
Finnish CP Programme, EUR 1,000 million 1,000 120 880  
Swedish CP Programme, SEK 10,000 million 997 75 921  
Uniper CP Programme, EUR 1,800 million 1,800 65 1,735  
Total 3,797 260 3,536  
         
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 2,019      
In Uniper 289      
Total 2,308      
of which in Russia 244      
         
Total Liquid Funds and Committed Financing 7,408      

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

EMTN programme of EUR 8 billion as of 31 December 2020

Notes Amount Carrying amount Interest rate Maturity Rating/Listing
Fixed rate MEUR MEUR      
XS0629937409 500 502 4,00 % 5/2021 Yes/Yes
XS0825855751 1 000 1 024 2,250 % 9/2022 Yes/Yes
XS1956028168 1 000 999 0,875 % 2/2023 Yes/Yes
XS1956037664 750 765 1,625 % 2/2026 Yes/Yes
XS1956027947 750 770 2,125 % 2/2029 Yes/Yes
XS0939100524 100 97 3,500 % 6/2043 No/Yes
           
Floating rate MSEK MEUR      
XS0945849577 1,000 100 Floating 6/2023 No/No
           
Total   EUR 4,258 million      

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

Key ratios

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 Negative 19 March 2020 Download
Fitch Ratings BBB/Outlook Negative 7 April 2020 Download

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

Fortum's credit rating history

Line diagram of Fortums rating history 2004-2021