Refinancing risks and liquidity

At March 31th 2020, the financial liabilities amounted to SEK 50,470m. After additions for net provisions for pensions, leasing, cash and cash equivalents, interest-bearing receivables, the net debt was SEK 51,979m.

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 March 31th 2020, unutilized bank credit facilities amounted to SEK 22,168m. In addition, cash and cash equivalents amounted to SEK 5 389m.

Bank credit facilities

At March 31th 2020, Essity has two syndicated bank facilities: EUR 1,000m (SEK 11,084m) with a final due date in 2025 and EUR 1,000m (SEK 11,084m) with a final due date in 2024 and 2025.1

 
  2020202120222023202420252026+Total
Commercial papers-1 108000000-1 108
Bond loans0-5 542-6 650-5 542-6 650-3 325-8 867-36 578
Utilization of credit lines0
Other loans-1 594-3 782-3 843-834-2 462-188-81-12 784
Total-2 702-9 324-10 494-6 376-9 113-3 513-8 948-50 470
Cash and cash equivalents5 389        
Unutilized credit lines22 168    -652-21 516  

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