Borrowings

The financing of Husqvarna Group 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 2021. Due to the nature of its business, the Group has major seasonal variations in its funding needs. These variations have during 2016 been managed mainly by utilizing the Group’s commercial paper (CP) program and short-term bank loans.

At year-end 2016, the Group’s total interest-bearing liabilities amounted to SEK 7,396m (6,952), of which SEK 4,953m (4,580) referred to long-term loans. During the year, the Group issued bonds totalling SEK 1,700m, of which SEK 500m with three years maturity and SEK 1,200m with five years maturity. At the same time bonds totalling SEK 150m maturing in 2017 were repurchased.

Husqvarna Group 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 Group has not breached any conditions in external loan agreements during the year. 

Borrowings
  Total borrowings 2016 Facility amount 2016 Total borrowings 2015 Facility amount 2015
Medium Term Note Program 3,546 5,000 2,547 5,000
Other bond loans 941 0 934 -
Committed revolving credit facility - 5,000 - 5,000
Long-term bank loans 1) 1,608 - 1,982 -
Financial leases 222 - 229 -
Commercial papers - 7,000 600 7,000
Other short-term loans 130 - 304 -
Derivate liabilities 949 - 356 -
Total 7,396 17,000 6,952 17,000
   
1) Originally long-term.