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 2023

Breakdown of loans, excl. Russia, EUR million 31 Mar 2023
EUR Bonds 1,550
SEK Bonds 89
Financial institutions 1,320
Other long-term debt 1,104
Short-term debt 1,811
Total 5,874

 

Loan portfolio and average interest rate on 31 March 2023

Maturity of loans, excl. Russia, EUR million 31 Mar 2023
2023 2,398
2024 736
2025 8
2026 734
2027 17
2028 and later 1,982
TOTAL  5,874

 

Liquid funds and maturity profile, excl. Russia

Total loans EUR 5,874 million

  • Average interest for EUR loans 3.2% (2022: 3.1%)
  • Average interest for Fortum loan portfolio including derivatives hedging financial net was 3.9% (2022: 3.7%)

Liquidity on 31 March 2023

Liquid Funds and Committed Credit Lines, EUR million    
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 2023
Syndicated Credit Facility, EUR 3,100 million 3,100 500 2,600 June 2023*
Long-term        
Syndicated Credit Facility, EUR 2,400 million 2,400 0 2,400 June 2025**
Total 6,400 500 5,900  
         
Liquid funds Total amount      
Fortum, excl. Russia 3,445      
Total Liquid Funds and Committed Financing, excluding Russia 9,345      

* 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 31 March 2023

Notes Amount Carrying amount Interest rate Maturity Rating/Listing
Fixed rate MEUR MEUR      
XS1956037664 750 717 1,625 % 2/2026 Yes/Yes
XS1956027947 750 736 2,125 % 2/2029 Yes/Yes
XS0939100524 100 97 3,500 % 6/2043 No/Yes
           
Floating rate MSEK MEUR      
XS0945849577 1,000 89 Floating 6/2023 No/No
           
Total   1,639       

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 2017-2022

EUR million or as indicated 2022 2021 2020 2019 2018 2017
Capital employed 15,522 30,885 26,239 19,929 18,170 18,172
Interest bearing net-debt N/A N/A N/A 5,260 5,509 988
Financial net debt 1,084 789 7,023 4,833    
Net cash from operating activities, total Fortum -8,767 4,970 2,555 1,575 804 993
ROCE, % N/A N/A N/A 10.0 6.7 7.1
Interest coverage -75.5 -12.7 27.3 8.0 10.0 8.7
Interest coverage including capitalised borrowing costs -72.2 -9.4 18.6 7.5 9.2 7.8
Funds from operations/interest-bearing net debt, % N/A N/A N/A 32.2 26.8 83.9
Financial net debt/comparable EBITDA, continuing operations excl. Russia 0.6 N/A        
Gearing, % 14 6 45 40 46 7
Comparable net debt/EBITDA N/A N/A N/A 3.0 3.6 0.8

Fortum's current credit rating

Rating agency Credit rating Rating valid  from Latest report
S&P Global Ratings BBB/Outlook Stable 9 March 2023 9 March 2023
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Fitch Ratings BBB/Outlook Stable 21 March 2023 3 May 2023
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The older credit rating reports are available in reports and presentations archive.

Fortum's credit rating history