Epiroc’s financial risk management is centralized to benefit economies of scale, to ensure good internal control and to facilitate monitoring of risk.
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.
Debt is primarily raised by the parent company Epiroc AB and transferred to subsidiaries as internal loans or capital injections. Financing is also undertaken locally, in countries which there are legal restrictions preventing financing through Group companies.
The long-term financing consists of capital market borrowings of MSEK 6 000 (MSEK 2 000 maturity in 2026, MSEK 2 000 maturity in 2027, MSEK 1 500 maturity in 2028 and MSEK 500 maturity in 2029), a loan facility from Swedish Export Corporation (SEK) and Svenska Handelsbanken (SHB) of MSEK 2 000 (maturity 2028 and two year extension options) and a loan facility with Nordic Investment Bank (NIB) of MSEK 1 000 (maturity 2027). Bonds of 1 134 MSEK with maturity in December 2023, are reported as short-term borrowings.
A revolving credit facility (RCF), of MSEK 4 000 (maturity 2025), is available to be used for general corporate purposes and as a backup facility. The participating banks in the credit facility are Bank of China, Citibank, Danske Bank, Deutsche Bank, Nordea, Skandinaviska Enskilda Banken, Standard Chartered Bank, and Svenska Handelsbanken. The Group also has a Swedish commercial paper program available, with a framework amount of MSEK 2 000. By the end of September, the Group has utilized MSEK 1 050.
Green Bond framework
Epiroc’s green bond framework enable issuance of green bonds under Epiroc’s EMTN-program. The framework is rated CICERO Medium Green, please see second opinion from CICERO Shades of Green for more information.