Financing
The overall objective of Hemsö’s financial operations is to ensure a long-term, stable capital structure, and to achieve the best possible financial net within the given risk frameworks. Hemsö issues bonds in the Swedish and European capital markets and commercial paper in the Swedish market. In addition, Hemsö has credit commitments and subscription commitments from Nordic banks, the European Development Bank and the Third Swedish National Pension Fund.
Summary Financial Policy
Responsibility for the Group's financial transactions and risks is managed by the Group's finance function. The financial operations are conducted in accordance with the Group's financial policy, which is annually approved by the Board of Directors.
| Financing risk | Outcome as of 30 September 2024 | |
| Loan-to-value ratio | Max. 60% | 58.0% |
| Net Debt/EBITDA | Max. 15 times | 14.1 times |
| Loan maturity | At least 3 years | 5.1 years |
| Loan maturity | Max. 25% within 12 months, thereafter max. 20% per year | Fulfilled |
| Debt-coverage ratio | At least 125% | 151% |
| Share of secured debt | Max. 20% | 1.2% |
| Interest risk | ||
| Interest-coverage ratio | At least 2.5 times (rolling 12 month period) | 3.0 times |
| Fixed-rate period | Average fixed-rate period 3-8 years | 4.8 years |
| Fixed-rate maturity | Max. 35% whitin 12 months, thereafter max 20% per year | Fulfilled |
| Counterparty risk | ||
| Financial instruments | Bank with a minimum credit rating of A- (S&P) | Fulfilled |
| Currency risk | ||
| Currency exposure relative to equity | Max. 35% of equity | 3.7% |
| Currency exposure relative to assets in EUR | 5-30% | 3.4% |
Capital structure
Hemsö is currently partly financed with capital from owners in the form of shareholder’s equity and through external financing. At 30 September 2024, shareholder’s equity amounted to SEK 29,194 million (28,294). Hemsö's interest-bearing liabilities amounted to SEK 52,497 million (52,029) and consist of secured bank loans, commercial papers and unsecured bonds.
| SEK million | 30 Sep 2024 | 30 Sep 2023 |
|---|---|---|
| Non-current interest-bearing liabilities | 42,323 | 42,361 |
| Current interest-bearing liabilities | 10,174 | 9,668 |
| Cash and cash equivalents | -1,856 | -1,041 |
| Net debt | 50,641 | 50,988 |
| Investment properties (market value) | 85,598 | 84,369 |
| Investments in joint venture | 1,670 | 1,734 |
| Total | 87,268 | 86,102 |
| Loan-to-value ratio | 58.0% | 59.2% |
| Share of secured debt | 1.2% | 1.2% |
Loan maturity and fixed-rate period
At 30 September 2024, loan maturity was 5.1 years (5.7) and the fixed-rate period was 4.8 years (5.0). The average interest rate was 2.3 per cent (2.4).
| Loan maturity | Fixed-rate period | ||||
|---|---|---|---|---|---|
| Year | Loans and commited credit facililites, SEK million | Loans, SEK million | Share, % | SEK million | Share, % |
| 2024 | 750 | 750 | 1 | 7,171 | 14 |
| 2025 | 5,775 | 4,775 | 9 | 5,289 | 10 |
| 2026 | 17,493 | 7,493 | 14 | 6,714 | 13 |
| 2027 | 5,551 | 4,551 | 9 | 2,322 | 4 |
| 2028 | 6,865 | 6,865 | 13 | 7,736 | 15 |
| 2029 | 7,984 | 6,484 | 12 | 6,663 | 13 |
| 2030 | 2,702 | 2,702 | 5 | 2,821 | 5 |
| 2031 | 1,913 | 1,913 | 4 | 1,740 | 3 |
| 2032 | 1,307 | 1,307 | 2 | 2,307 | 4 |
| >2032 | 9,608 | 9,608 | 18 | 9,734 | 19 |
| Total | 59,948 | 46,448 | 88 | 52,497 | 100 |
| Commercial papers | 6,049 | 12 | |||
| Total | 59,948 | 52,497 | 100 |
Commercial papers
In 2013, Hemsö established an Commercial paper programme with a ceiling of SEK 12,000,000,000.
| Issuer: | Hemsö Fastighets AB |
| Total amount: | 12,000,000,000 SEK |
| Maturity: | Not less than 1 day anf not more than 1 year |
| Arranger: | Swedbank AB |
| Emissionsinstitut: | Swedbank AB, Danske Bank A/S, Nordea Bank AB, Nordea Bank Finland Abp, Skandinaviska Enskilda Banken AB och Svenska Handelsbanken AB |
| Issuing and Paying Agent: | Svenska Handelsbanken AB |
-
About Hemsö
About Hemsö
Read moreHemsö is the leading owner of properties for public use in Sweden, managing and developing properties for nursing homes, education, healthcare and the justice system.
-
Policies
Code of Counduct and Policies
Read moreHemsö strives to act with the greatest possible credibility, honesty and transparency. This means acting in an ethical and professional manner and treating everyone with respect.
-
Risk management
Risks and risk management
Read moreHemsö is exposed to various risks that may affect the company’s future operations, costs and results.