Financing
LKAB's operations are financed through our own cash flow and external loans, primarily corporate bonds.
Since December 2014, LKAB has had financial instruments listed for trading on NASDAQ Stockholm. The Group has credit commitments and several borrowing programs, both MTN programmes and commercial paper programmes, which provide a good level of preparedness for temporary fluctuations in funding needs in the short term, and ensures financing in the long term.
The Group’s borrowing is managed centrally by LKAB Treasury Center, with the aim of ensuring efficiency and coordination of financing needs and managing refinancing risk centrally.
Corporate bonds
In order to ensure access to funding, LKAB has several borrowing programmes, both MTN programmes and commercial paper programmes.
MTN programmes
LKAB has an MTN programme for issuing corporate bonds, known as Medium Term Notes, for a maximum amount of SEK 7 billion. Within the framework of the program, corporate bonds are issued in Swedish kronor or euros with a duration of at least one year.
Issued corporate bonds can, in accordance with the general terms and conditions of the programme, point 9, be redeemed prematurely in the event that the Swedish stat’s ownership of LKAB would be less than 100 percent, a so-called reservation of title. Detailed information about the MTN programme and risk factors can be found in related documents below.
Within the framework of the MTN programme, we have established a framework for green bonds. More information about the framwork for green bonds and our Green Bond Impact Report can be found in the documentation below.
Issuing institution for the purchase and sale of LKAB's corporate bonds
- Danske Bank, Danske Markets 08-568 805 77
- Handelsbanken Capital Markets 08-463 48 39
- Nordea Markets 08-614 87 53
- SEB Capital Markets 08-506 232 19
- Swedbank 08-700 91 92
Svenska Handelsbanken AB (publ) is the lead bank for the MTN programme.
Commercial paper programmes
LKAB has a programme for issuing commercial papers, up to a maximum of SEK 5 billion. Under this programme, LKAB can issue commercial papers in Swedish kronor or euro with a duration of less than one year.
According to the programme’s general terms, point 5.1, issued commercial papers can be redeemed in advance in the event the Swedish state’s ownership of LKAB should drop below 100 percent, known as reservation of title.
Issuing institution for the purchase and sale of LKAB's commercial papers
- Handelsbanken Capital Markets 08-463 48 39
- Nordea Markets 08-614 94 79
- SEB Capital Markets 08-506 231 73
- Swedbank 08-700 91 92
Handelsbanken Capital Markets is the lead bank for the commercial paper programme.
