The financing of Husqvarna is managed centrally by Group Treasury in order to ensure efficiency and risk control.
Debt is primarily raised at Parent Company level and transferred to subsidiaries as internal loans or capital injections. In this process, various derivatives are used to convert the funds to the required currency. Financing is also undertaken locally, mostly in countries in which there are legal restrictions preventing financing through Group companies. The major part of the Group’s financing is currently conducted through bilateral loan agreements, bonds through a Swedish Medium Term Note (MTN) program and other bond financing. In addition, the Group has an unutilized SEK 5bn committed revolving credit facility maturing in 2020, with an option for an additional 1 year. Due to the nature of its business, the Group has major seasonal variations in its funding needs. These variations have during 2015 been managed mainly by utilizing the Group’s commercial paper (CP) program and short-term bank loans.
At year-end 2015, the Group’s total interest-bearing liabilities amounted to SEK 6,952m (7,504), of which SEK 4,580m (5,598) referred to long-term loans.
Husqvarna has, as mentioned, substantial seasonal variation in its borrowings. The seasonal peak of the indebtedness normally implies additional borrowings of SEK 2,500–3,500m in excess of year-end borrowings, taking dividend into account.
Husqvarna has not breached any conditions in external loan agreements during the year.
|Total borrowings 2015||Facility amount 2015||Total borrowings 2014||Facility amount 2014|
|Medium Term Note Program||2,547||5,000||2,565||5,000|
|Other bond loans||934||-||1,928||-|
|Committed revolving credit facility||-||5,000||-||5,000|
|Long-term bank loans 1)||1,982||-||1,939||-|
|Other short-term loans||304||-||139||-|
|1) Originally long-term.|