Credit facilities

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.

Debt structure and maturity profile

Breakdown of Group debt on 30 September 2017 Maturity profile and average interest rate on 30 September 2017

Breakdown of debt

maturity profile

Total interest-bearing debt EUR 4,951 million

  • Average interest 3.5% (2016: 3.5%)

  • Portfolio mainly in EUR and SEK  with average interest cost 2.3% (2016: 2.1%)

  • EUR 742 million (2016: 805) swapped to RUB, average interest cost including cost for hedging 10.2% (2016: 11.4%)

Liquidity on 30 September 2017

Short term financing, MEUR Remaining Outstanding Total
Commercial paper programmes      
Finnish CP programme 500 0 500
SEK 5,000 M Swedish CP programme 518 0 518
  1,018 0 1,018
Liquid Funds and committed credit lines Available Outstanding Total
Committed credit lines      
Short term (valid until further notice) 134 0 134
Long term (valid until June 2021) 1,750 0 1,750
  1,844 0 1,844
Liquid funds 3,877    
   of which in Russia 268    
Total liquid funds and committed financing 5,761    

Bonds issued

EMTN programme of EUR 8 billion
30 September 2017

Notes Currency Amount in EUR Carrying amount Interest rate, % Maturity ISIN code Rating Listing
Fixed rate bearer notes EUR 750,000,000 750,000,000 748,400,272 6.000 20.03.2019 XS0418729934 Yes Yes
Fixed rate bearer notes EUR 500,000,000 500,000,000 518,901,764 4.000 24.05.2021 XS0629937409 Yes Yes
Fixed rate bearer notes EUR 1,000 000 000 1,000 000 000 1,064,363,311 2.250 06.09.2022 XS0825855751 Yes Yes
Fixed rate bearer notes EUR 100,000,000 100,000,000 96,545,734 3.500 03.06.2043 XS0939100524 No Yes
  EUR 2,350,000,000 2,350,000,000 2,428,211,081          
Floating rate bearer notes SEK 3,000,000,000 310,913,048 310,904,201 Floating 20.03.2018 XS0906882948 Yes Yes
Fixed rate bearer notes SEK 1,150,000,000 119,183,335 119,104,518 2.750 20.03.2018 XS0906880652 Yes Yes
Floating rate bearer notes SEK 1,000,000,000 103,637,683 103,637,683 Floating 27.06.2023 XS0945849577 No No
  SEK 5,150,000,000 533,734,066 533,646,402          
Total     2,883,734,066 2,961,857,483          

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.

 

Credit rating

Fortum's current rating and outlook

Rating agency Credit rating and outlook Valid from
Standard & Poor's BBB, negative 18 January 2018
Fitch Ratings BBB+, watch negative 28 September 2017

Fortum's rating history

Rating history

Latest credit reports
 

Standard & Poor's credit research update January 2018 (334.09 KB)
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Standard & Poor's credit research update September 2017 (275.92 KB)
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Standard & Poor's credit rating report July 2017 (266.97 KB)
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Standard & Poor's credit rating report July 2016 (364.47 KB)
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Standard & Poor's credit rating report July 2015 (348.06 KB)
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Standard & Poor's credit rating report update June 2015 (263.17 KB)
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Fitch credit rating report update September 2017 (47.51 KB)
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Fitch credit rating report January 2017 (1008.96 KB)
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Fitch credit rating report November 2015 (43.66 KB)
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Fitch credit rating report update November 2014 (47.15 KB)
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