Com Hems policy is for the group to seek long-term diversified sources of funding with a mixture of capital market- and bank financing. Com Hems treasury function is responsible for the groups financing activities and cash management, and to ensure centralized and effective risk management.
The group has through its daily operating activities various types of financial risk. Financial risk refers to fluctuations in the company’s income statement, balance sheet and cash flows resulting from variations in exchange rates, interest levels and credit margins. The Board of Directors has formulated the group’s financial policy for managing financial risks, which sets a framework of guidelines and regulations for financing activities. The overall goal for the treasury function is to provide a cost efficient financing and minimize any negative effects on the company’s income statement due to unfavorable market fluctuations and financial risks.
As of September 30, 2018 Com Hems debt portfolio had an average remaining tenor of approximately 2,5 years, and the average blended interest cost was approximately 2.5 per cent for the third quarter 2018.
|September 30, 2018, SEKm||Maturity date||Interest base/coupon||Total credit||Utilised amount||Unutilised amount|
|Term loan||Dec 31, 2020||Floating||3,500||3,500||–|
|Revolving Credit Facility||Dec 31, 2020||Floating||2,000||350||1,650|
|Incremental Facility||Dec 31, 2020||Floating||2,675||2,675||–|
|2016/2021 Notes||Jun 23, 2021||Fixed | 3.625%||1,750||1,750||–|
|2016/2022 Notes||Feb 25, 2022||Fixed | 3.5%||2,250||2,250||–|
Com Hem has through the subsidiary Com Hem Sweden AB (publ), issued SEK 800m of commercial papers, which is a short-term loan in the capital markets. The corresponding amount is unutilized in the company’s Revolving Credit Facility, which is retained as a long-term backup facility. The purpose of this borrowing is to minimise the Group’s interest expenses.