Refinancing risks and liquidity

At September 30th 2024, the financial liabilities amounted to SEK 43,402m. After additions for net provisions for pensions, leasing, cash and cash equivalents, interest-bearing receivables, the net debt was SEK 29,122m.

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 September 30th 2024, unutilized bank credit facilities amounted to SEK 67,644m. In addition, cash and cash equivalents amounted to SEK 11,826.

Bank credit facilities

At September 30th 2024, Essity has three syndicated bank facilities: EUR 4,000 (SEK 45,096) with a due date in 20241), EUR 1,000m (SEK 11,274m) with a final due date in 2025 and 20272) and EUR 1,000m (SEK 11,274m) with a final due date in 2029.

1) Essity has a unilateral right to extend the maturity with up to 18 months from December 2024.
2) The syndicated bank facility maturing 2027 was in January 2022 prolonged with EUR 938m to 2027, the remaining EUR 62m matures in 2025.