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 2022

Donut diagram presenting breakdown of the Group loans at 31 March 2022: EURO Bonds EUR 3,572 million and 26% SEK Bonds EUR 97 million and 1%, Financial institutions EUR 4,197 million and 30%, Other long-term debts EUR 1,130 and 8% and short-term debt EUR 4,860 million and 35%. Total loans EUR 13,838 million.

Loan portfolio and average interest rate on 31 March 2022

Maturity of loans in 31 March 2022: In 2022 EUR 6,324 million; in 2023 EUR 3,844 million; in 2024 EUR 867 million; in 2025 EUR 18 million; in 2026 EUR 757 million; in 2027 and later EUR 2,028 million. Total loans EUR 13,838 million.

*) Uniper’s drawn RCF of EUR 1,800 million has an ultimate contractual maturity in 2025 and is consequently shown here for the year 2025. However, this facility has been classified as current liability on the balance sheet due to planned earlier repayment.

Total loans EUR 13,838 million

  • Average interest for EUR loans 0.7% (2021: 0.6%)
  • Average interest for Fortum Group loan portfolio including derivatives hedging financial net was 1.0 % (2021: 1.3%)
  • Lower average interest for Fortum Group loan portfolio including derivatives due to closing of RUB hedges

Liquidity on 31 March 2022

Short-term financing, EUR million        
Commercial Paper Programmes Total amount Outstanding Available  
Finnish CP Programme, EUR 1,000 million 1,000 857 143  
Swedish CP Programme, SEK 10,000 million 967 619 348  
Uniper CP Programme, EUR 1,800 million* 1,800 379 0  
Total 3,767 1,855 491  
         
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
Bilateral Credit Facility, EUR 800 million 800 0 800 December 2022**
Syndicated Credit Facility, EUR 3,000 million 3,000 0 3,000 July 2022
Long-term        
Syndicated Credit Facility, EUR 1,750 million 1,750 1,750 0 June 2023
Uniper Syndicated Credit Facility, EUR 1,800 million 1,800 1,800 0 September 2025
Uniper Bilateral Credit Facility, EUR 2,000 million 2,000 0 2,000 April 2023
Total 9,450 3,550 5,900  
         
Liquid funds Total amount      
Fortum 2,523      
Uniper segment 3,897      
Total 6,419      
of which in Russia 242      
         
Total Liquid Funds and Committed Financing 12,319      

*Link to Uniper EUR 1,800 million syndicated credit facility: available only for undrawn syndicated credit facility amount. Since whole Uniper syndicated credit facility was in use, no Uniper CP limit available as of 31 March 2022.
**With an option to extend the maturity by one year.

EMTN programme of EUR 8 billion as at 31 March 2022

Notes Amount Carrying amount Interest rate Maturity Rating/Listing
Fixed rate MEUR MEUR      
XS0825855751 1 000 1,006 2,250 % 9/2022 Yes/Yes
XS1956028168 1 000 997 0,875 % 2/2023 Yes/Yes
XS1956037664 750 738 1,625 % 2/2026 Yes/Yes
XS1956027947 750 734 2,125 % 2/2029 Yes/Yes
XS0939100524 100 97 3,500 % 6/2043 No/Yes
           
Floating rate MSEK MEUR      
XS0945849577 1,000 97 Floating 6/2023 No/No
           
Total   EUR 3,669 million      

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.

Key ratios 2016-2021

EUR million or as indicated 2021 2020 2019 2018 2017 2016
Capital employed 30,885 26,239 19,929 18,170 18,172 18,649
Interest bearing net-debt N/A N/A 5,260 5,509 988 -48
Net cash from operating activities 4,970 2,555 1,575 804 993 621
ROCE, % N/A N/A 10.0 6.7 7.1 4.0
Interest coverage   27.3 8.0 10.0 8.7 4.6
Interest coverage including capitalised borrowing costs -12.7 18.6 7.5 9.2 7.8 4.1
Funds from operations/interest-bearing net debt, % -9.4 N/A 32.2 26.8 83.9 -1,503.4
Gearing, % 6 45 40 46 7 0
Comparable net debt/EBITDA 0.2 2.9        

Fortum's current credit rating

Rating agency Credit rating Rating valid  from Latest report
S&P Global Rating BBB/Outlook Negative 16 May 2022 Download (16 May 2022)
Fitch Ratings BBB/Outlook Negative 23 June 2022 Download (23 June 2022)

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

Fortum's credit rating history

Line diagram showing Group credit rating history. In 2009-2012, 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.