Refinancing risks and liquidity
At September 30th 2023, the financial liabilities amounted to SEK 68,316m. After additions for net provisions for pensions, leasing, cash and cash equivalents, interest-bearing receivables, the net debt was SEK 60,633m.
Essity’s financing is partly secured through committed bank credit facilities. With these as protection against refinancing risks, Essity uses short-term borrowing under market programs.
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.
As per September 30th 2023, unutilized bank credit facilities amounted to SEK 23,974m. In addition, cash and cash equivalents amounted to SEK 6,391m.
Bank credit facilities
At September 30th 2023, Essity has two syndicated bank facilities: EUR 1,000m (SEK 11,487m) with a final due date in 2025 and 20271) and EUR 1,000m (SEK 11,487m) with a final due date in 2028.