Most of the Group’s interest-bearing debt is raised centrally by the Group’s parent company. The Group seeks to reduce liquidity and refinancing risks with a balanced maturity profile of loans as well as by keeping sufficient amount of credit lines available.
The Group‘s credit facilities include liquidity, profitability, net debt and equity related financial covenants, which are actively monitored. The Group has agreed with its lenders higher leverage (net debt to EBITDA) covenant for Q1/2023 and a temporary covenant (absolute EBITDA) to replace leverage covenant in Q2/2023 due to decreased EBITDA and increased net debt. The Group expects to continue to fulfill the requirements of its lenders in 2023. Liquidity risks are under control and the Group is preparing for refinancing its loans that mature to a large extent in H1 of 2024
In addition, the Group has a Finnish commercial paper program of EUR 80 million. The program is utilized to satisfy the Group’s short term funding needs cost-efficiently.