Electrolux Professional Group’s financial risk management aim to capitalize on economies of scale, synergy effects, and to minimize our operational risk.
Debt Structure
The Group use a mix of funding sources to finance our business. Currently our financing consists of bonds, commercial paper, and term loans. In addition, we have a syndicated back up facility of 200m EUR ensuring our debt and credit profile.
Key debt ratios
The Group´s ambition is to meet credit ratios equivalent to investment grade and leverage (Net Debt to EBITDA) shall be monitored and kept within 2.5x. Leverage may exceed this level temporarily from time to time, to finance acquisitions.
March 31, 2024
In total, net debt amounted to SEK 2,976m as of March 31, 2024, compared to SEK 1,390m as of December 31, 2023. Long-term borrowings amounted to SEK 2,815m. Short term borrowings amounted to SEK 522m. Total borrowings amounted to SEK 3,387m compared to SEK 1,963m as of December 31, 2023.
Net debt/EBITDA ratio
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Maturity profile
March 31, 2024
Electrolux Professional Group has a term loan of SEK 600m with a tenure of seven years from 2020, a sustainability linked loan of EUR 60m with a tenure of seven years from 2021, a bridge loan linked to the acquistion of TOSEI of SEK 700m maturiting 2025, a commercial paper program with a framework amount of SEK 2,000m, a MTN programme with a framework amount of SEK 5,000m, and a revolving credit facility of EUR 200m with a tenure until 2027.
At the end of the first quarter, the Group’s revolving credit facility of EUR 200m was unutilized, and issuances under the Group’s SEK 2,000m commercial paper programme were SEK 450m. None of the loans and credit facilities contains any financial covenants.
Funding sources
Maturity profile
| Loans | Inital amount | Outstanding | Maturity, year |
|---|---|---|---|
| Term loan | SEK 600m | SEK 600m | 2027 |
| Sustainability linked loan | EUR 60m | EUR 60m | 2028 |
| Bridge loan | SEK 1 600m | SEK 700m | 2025 |
| Credit Facilities | Committed | Utilized | Maturity, year |
|---|---|---|---|
| Revolving Credit Facility | EUR 200m | EUR 0m | 2027 |
| Debt Capital Markets | Program size | Outstanding |
|---|---|---|
| Commercial Paper | SEK 2 000m | SEK 450m |
| Bonds | SEK 5 000m | SEK 900m |
Bonds
For the issue of bonds in the Swedish debt capital markets, Electrolux Professional Group has a domestic Medium-Term Note (MTN) programme with a framework amount of SEK 5,000 million, which was established 2024.
Commercial paper
Electrolux Professional Group utilizes commercial paper for its short-term funding. The program has a framework amount of SEK 2,000 million, is registered with Euroclear and can be utilized in SEK or EUR. Commercial papers is issued with tenors of less than one year.
| Established | 2023 |
|---|---|
| Framework amount | SEK 2,000m |
| Maturity | Max. one year |
| Governing Law | Swedish |
| Arranger | Danske Bank |
| IPA | Danske Bank |
| Dealers | Danske Bank, SEB |
| Clearing System | Euroclear Sweden |
Dealers
Danske Bank
Behshad Shadvari, +46 (0)8-568 806 09, behshad.shadvari@danskebank.se
SEB
Sekou Soumaoro, +46 (0)8 506 230 05, sekou.soumaoro@seb.se
Gabriel von Seth, +46 (0)8 506 231 73, gabriel.von.seth@seb.se
Treasury Contact
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.