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 2022

Donut diagram presenting breakdown of the Group loans at 30 September 2022: EURO Bonds EUR 2,538 million and 20% SEK Bonds EUR 92 million and 1%, Financial institutions EUR 3,990 million and 31%, Other long-term debt EUR 1,036 and 8% and short-term debt EUR 5,208 million and 40%. Total loans EUR 12,864 million.

Loan portfolio and average interest rate on 30 September 2022

Diagram presenting maturity of loans in 30 September 2022: In 2022 EUR 1,750 million; in 2023 EUR 5,092 million; in 2024 EUR 717 million; in 2025 EUR 2,417 million; in 2026 EUR 734 million; in 2027 and later EUR 2,154 million. Total loans EUR 12,864 million.

Total loans EUR 12,864 million

  • Average interest for EUR loans 1,8% (2021: 0.6%).
  • Average interest for Fortum Group loan portfolio including derivatives hedging financial net was 2.3 % (2021: 1.3%).

Liquidity on 30 September 2022

Short-term financing, EUR million        
Commercial Paper Programmes Total amount Outstanding Available  
Finnish CP Programme, EUR 2,500 million 2,500 107 2,393  
Swedish CP Programme, SEK 10,000 million 917 314 603  
Total 3,417 421 2,996  
         
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 800 800 0 December 2022*
Syndicated Credit Facility, EUR 3,100 million 3,100 3,100 0 June 2023**
Finnish State bridge financing, EUR 2,350 million 2,350 350 2,000 September 2023
Long-term        
Syndicated Credit Facility, EUR 2,400 million 2,400 2,400 0 June 2025***
Total 8,750 6,650 2,100  
         
Liquid funds Total amount      
Fortum 3,638      
of which in Russia 268      
Total Liquid Funds and Committed Financing, excluding Russia 5,470      

* With an extension option of one year by Fortum
** With 6+6 months extension options by Fortum
*** With 1+1 year extension options by the lenders

EMTN programme of EUR 8 billion as at 30 September 2022

Notes Amount Carrying amount Interest rate Maturity Rating/Listing
Fixed rate MEUR MEUR      
XS1956028168 1 000 997 0,875 % 2/2023 Yes/Yes
XS1956037664 750 717 1,625 % 2/2026 Yes/Yes
XS1956027947 750 728 2,125 % 2/2029 Yes/Yes
XS0939100524 100 97 3,500 % 6/2043 No/Yes
           
Floating rate MSEK MEUR      
XS0945849577 1,000 92 Floating 6/2023 No/No
           
Total   EUR 2 630 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 Ratings BBB/Outlook Negative 3 August 2022 Download (29 September 2022)
Fitch Ratings BBB/Outlook Negative 23 June 2022 Download (28 September 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.