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 30 September 2021

Donut diagram presenting breakdown of the Group loans at 30 September 2021: EURO Bonds EUR 3,622 million and 31% SEK Bonds EUR 98 million and 1%, Financial institutions EUR 2,532 million and 22%, Other long-term debts EUR 1,595 and 13% and short-term debt EUR 3,811 million and 33%. Total loans EUR 11,658 million.

Loan portfolio and average interest rate on 30 September 2021

A diagram presenting group's maturity profile. At 30 September, undrawn committed credit facilities amounted to EUR 3,689 million consisting of a EUR 1,350 million revolving credit facility (maturity in November 2021), EUR 1,750 million revolving credit facility (maturity in June 2023) and Uniper’s revolving credit facility of EUR 1,800 million (maturity in September 2025). In addition, Fortum has EUR 100 million of committed overdraft limits that are valid until further notice.

Total loans EUR 11,658 million

  • Average interest for EUR loans 0.7% (2020: 0.9%)
  • Average interest for Fortum Group loan portfolio including derivatives hedging financial net was 1.3% (2020: 1.5%). EUR 716 million (2020: 634) was swapped to RUB with average interest 6.7% (2020: 6.2%) including cost for hedging

Liquidity on 30 September 2021

Short-term financing, EUR million        
Commercial Paper Programmes Total amount Outstanding Available  
Finnish CP Programme, EUR 1,000 million 1,000 594 406  
Swedish CP Programme, SEK 10,000 million 983 329 654  
Uniper CP Programme, EUR 1,800 million 1,800 1 311 489  
Total 3,783 2,234 1,550  
         
Liquid Funds and Committed Credit Lines        
Committed Credit Lines Total amount Outstanding Available Maturity
Short-term        
Bilateral Overdraft Facilities, EUR 100 million 100 0 100 Valid until further notice
Syndicated Credit Facility, EUR 1,350 million 1,350 0 1,350 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 0 489 September 2025
Total 5,000 0 3,689  
         
Liquid funds Total amount      
In Fortum Corporation 4,438      
In Uniper 1,797      
Total 6,236      
of which in Russia 319      
         
Total Liquid Funds and Committed Financing 9,925      

* The facility was cancelled in October 2021

EMTN programme of EUR 8 billion as of 30 September2021

Notes Amount Carrying amount Interest rate Maturity Rating/Listing
Fixed rate MEUR MEUR      
XS0825855751 1 000 1,013 2,250 % 9/2022 Yes/Yes
XS1956028168 1 000 999 0,875 % 2/2023 Yes/Yes
XS1956037664 750 758 1,625 % 2/2026 Yes/Yes
XS1956027947 750 755 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 3,721 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 (1 Sep 2021)
Fitch Ratings BBB/Outlook Stable 28 June 2021 Download (12 Aug 2021)

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.