Refinancing risks and liquidity

At September 30th 2020, the financial liabilities amounted to SEK 45,521m. After additions for net provisions for pensions, leasing, cash and cash equivalents, interest-bearing receivables, the net debt was SEK 45,694m.

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 2020, unutilized bank credit facilities amounted to SEK 21,083m. In addition, cash and cash equivalents amounted to SEK 7 139m.

Bank credit facilities

At September 30th 2020, Essity has two syndicated bank facilities: EUR 1,000m (SEK 10,542m) with a final due date in 2025 and EUR 1,000m (SEK 10,542m) with a final due date in 2024 and 2025.1

  2020202120222023202420252026+Total
Commercial papers00000000
Bond loans0-5 271-6 325-5 271-6 325-3 162-8 433-34787
Utilization of credit lines0
Other loans-65-3 608-3 741-678-2 402-171-69-10 734
Total-65-8 879-10 066-5 948-8 727-3 333-8 502-45 521
Cash and cash equivalents7 139        
Unutilized credit lines21 083    -620-20 463  

1) The syndicated bank facility maturing 2024 was in January 2020 with prolonged with EUR 941m to 2025, the remaining EUR 59m matures in 2024.