Refinancing risks and liquidity

At December 31th 2019, the financial liabilities amounted to SEK 48,191m. After additions for net provisions for pensions, leasing, cash and cash equivalents, interest-bearing receivables, the net debt was SEK 50,940m.

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 December 31th 2019, unutilized bank credit facilities amounted to SEK 20,851m. In addition, cash and cash equivalents amounted to SEK 2 928m.

Bank credit facilities

At December 31th 2019, Essity has two syndicated bank facilities: EUR 1,000m (SEK 10,425m) with a final due date in 2021 and EUR 1,000m (SEK 10,425m) with a final due date in 2024.1

  2020202120222023202420252026+Total
Commercial papers-4 999000000-4 999
Bond loans0-5 213-6 255-5 213-6 255-3 128-5 213-31 276
Utilization of credit lines0
Other loans-3 134-3 090-2 940-196-2 268-131-158-11 916
Total-8 133-8 302-9 195-5 408-8 523-3 259-5 371-48 191
Cash and cash equivalents2 928        
Unutilized credit lines20 851 -10 425  -10 425   

The syndicated bank facility maturing 2021 was refinanced with the same nominal amount during January 2020. The new maturing date is in 2025. The syndicated bank facility maturing 2024 was in January 2020 prolonged with EUR 941m to 2025, the remaining EUR 59m matures in 2024.