Debt

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 5 992 (MSEK 1 997 maturity in 2026, MSEK 1 997 maturity in 2027, MSEK 1 498 maturity in 2028 and MSEK 500 maturity in 2029), a loan facility with Nordic Investment Bank (NIB) of MSEK 999 (maturity 2027) and two loan facilities from Swedish Export Corporation (SEK) and Svenska Handelsbanken (SHB), of MSEK 1 994 (maturity 2028 and two year extension options) and of MSEK 997 (maturity 2028 and one year extension options).

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 December, the Group has utilized MSEK 1 031.

Epiroc EMTN programme

Epiroc has a €1,500,000,000 Euro Medium Term Note Programme.

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.

Epiroc was assigned preliminary BBB+ credit rating from S&P Global Ratings on November 21, 2018. On December 5, 2018, Epiroc was assigned a BBB+ long-term issuer credit rating and a BBB+ rating to the SEK2 billion senior unsecured bonds that Epiroc issued on November 29, 2018.

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