Debt financing

SSAB's funding is focused on supporting the Group’s strategy and covering the needs for financing within the framework of the Group's financial policy. The funding is primarily executed through the parent company. SSAB aims to maintain an investment grade credit rating and is currently rated BBB-. In order to minimize the refinancing risk, the objective is that the debt should have an even maturity profile. Short-term funding is primarily obtained through the commercial paper markets in Sweden and Finland. SSAB has a strong and supportive bank group providing committed back-stop facilities to secure the short-term funding and liquidity needs.

Cash flow, financing and liquidity

Operating cash flow for the first nine months of 2023 increased to SEK 15,727 (13,813) million, the change in working capital more than offset the lower result. Net cash flow, after dividends of SEK 8,960 (5,406) million, amounted to SEK 2,730 (2,061) million.

Net cash at September 30, 2023 was SEK 16,780 (8,739) million. Cash and cash equivalents were SEK 27,715 (17,649) million and non-utilized credit facilities were SEK 8,553 (10,097) million, which combined corresponds to 29% (22%) of rolling 12-month revenue. The term to maturity of the total loan portfolio at September 30, 2023 averaged 6.7 (6.1) years, with an average fixed interest period of 1.4 (1.0) years.
 

 

SSAB’s funding is conducted primarily through the bank market and existing note and commercial paper programs. For borrowing for terms of up to ten years, a European Medium Term Note program (EMTN) is used, while Swedish and Finnish commercial paper programs are used for borrowing for shorter terms. The program limit of the EMTN program is EUR 2,000 million. The Swedish commercial paper program has a limit of SEK 5,000 million and the Finnish commercial paper program has a limit of EUR 500 million.

On January 28, 2022 S&P Global ratings raised the long-term corporate credit rating to BBB- from BB+, with stable outlook.