Essity's financial risk management is centralized to capitalize on economies of scale and synergy effects and to minimize operational risks.
The central treasury function is responsible for the Group's borrowing, liquidity management, currency and interest rate risk management, and serves as an internal bank for the Group's financial transactions. Essity’s policy is that loan documentation should not contain clauses that entitle the lenders to terminate the loans or change coupon rates when changes occur in Essity’s financial key ratios or credit ratings.
In addition to ensuring that Essity has secure financing, financial transactions are conducted with the aim of limiting the Group's financial risks.