Funding risk

By funding risk is meant the risk that funding of the Group’s capital requirement will be impeded or become more costly. To mitigate funding risk the Group strives to maintain a balanced maturity structure, a good liquidity reserve, and diversified borrowing. This creates a preparedness to take necessary alternative actions to raise capital should this be necessary.

Indutrade takes a central approach to the Group’s funding. In principle, all external funding is conducted by the Parent Company, which then funds the Group’s subsidiaries, both in and outside Sweden, in local currency. Cash pools are established in Sweden, Finland, Norway, Denmark, Germany, the Netherlands and the UK.

Indutrade has had a commercial paper programme in place since
2014. As of the end of the financial year, the framework of the programme
was SEK 3,000 million. Indutrade also has a Medium Term Note programme (MTN) with a framework amount of SEK 10,000 million.

During the first quarter of 2021, Indutrade AB obtained a long-term credit rating of BBB- with stable outlook from S&P Global Ratings.

The Group’s interest-bearing net debt was SEK 7,747 million (8,580)
at year-end 2023. The Group had SEK 3,012 million (1,589) in cash and cash equivalents and SEK 6,235 million (4,985) in unutilised credit commitments.

Maturity profile – financing1), 31 December 2023

Maturity dates 2023.PNG

The Group strives to maintain a reasonable balance between equity,
debt financing and liquidity, to enable the Group to secure funding at
a reasonable capital cost. The Group’s goal is that the net debt/equity
ratio, defined as interest-bearing liabilities less cash and cash equivalents
in relation to equity, normally should not exceed 100%. At year-end 2023
the net debt/equity ratio was 53% (67%).