Debt sources of financing
Most of Swedish Match’s financing consists of a global medium-term note program (MTN). At December 31, 2016, a total of 10,243 MSEK of the global program was outstanding. The average maturity of the Group’s bond borrowing at December 31, 2016 was 4.3 years.
The global medium-term note program (MTN) with a limit amount of 1,500 MEUR is an uncommitted borrowing program and the availability could be limited by the Group’s creditworthiness and prevailing market conditions.
Swedish Match has a syndicated bank credit facility of 1,500 MSEK, of which one fourth matures in December 2020 and three fourths matures in December 2021. This was unutilized at year-end and contained no financial covenants. At year-end 2016, available cash funds and committed credit facilities amounted to 4,864 MSEK. Of this amount, confirmed credit lines amounted to 1,500 MSEK and cash and cash equivalents making up the remaining 3,364 MSEK.
The interest maturity structure on December 31, 2016 was as follows:
| Year | Fixed loans, MSEK | Variable loans, MSEK | Total, MSEK |
|---|---|---|---|
| 2017 | 2,042 | 5 | 2,047 |
| 2018 | 902 | 347 | 1,249 |
| 2019 | 954 | 200 | 1,154 |
| 2020 | 799 | – | 799 |
| 2021 | 497 | – | 497 |
| 2022– | 4,471 | – | 4,471 |
| Total | 9,664 | 552 | 10,216 |
Under the global MTN program, Swedish Match has issued bonds in SEK, EUR, USD and CHF. Borrowing in EUR, USD and CHF is hedged into SEK by currency and interest rate swaps. The average interest cost for outstanding bonds (including derivative instruments) on December 31, 2016 was 3.4 percent (4.2). Read more about debt programs.
