Note 29. Borrowings and net debt
| Net debt | ||
| Consolidated | ||
| SEK millions | 2023 | 2022 |
| Credit institutions | 145 | 829 |
| Swedish Export Credit | 2,207 | 2,227 |
| Handelsbanken | – | 1,114 |
| Commercial papers | – | 892 |
| Corporate bonds | 10,921 | 10,000 |
| Borrowings* | 13,273 | 15,062 |
| Cash and cash equivalents and current deposits | -5,863 | -4,663 |
| Net debt excluding lease liabilities*** | 7,410 | 10,399 |
| Lease liabilities** | 2,601 | 2,671 |
| Net debt including lease liabilities*** | 10,011 | 13,070 |
* Equals the sum of the non-current and current liabilities to credit institutions etc in the statement of consolidated financial position, which is also displayed in the below table “Maturity of loans by currency”.
** Equals the sum of the non-current and current lease liabilities in the statement of consolidated financial position.
*** Alternative performance measure.
The changes in the loans during the year are explained by the following table:
| Loans | ||||
| Consolidated | ||||
| SEK millions | January 1 | Cash flows | Exchange rate effects | December 31 |
| Year: |
| |||
| 2022 | 8,244 | 5,971 | 847 | 15,062 |
| 2023 | 15,062 | -1,696 | -93 | 13,273 |
The loans are distributed among currencies as follows:
| Maturity of loans by currency | ||||||
| Consolidated | ||||||
| Current | Non-current | Total | ||||
| SEK millions | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
| Currency: |
|
|
| |||
| BRL | 17 | 22 | – | – | 17 | 22 |
| CAD | 1 | 1 | – | – | 1 | 1 |
| DKK | 6 | – | – | – | 6 | – |
| EUR | 3,371 | 159 | 8,830 | 13,362 | 12,201 | 13,521 |
| GBP | 20 | 5 | – | – | 20 | 5 |
| INR | 8 | 2 | – | – | 8 | 2 |
| NOK | – | 3 | – | – | – | 3 |
| PLN | 21 | 116 | – | – | 21 | 116 |
| SEK | – | 1,392 | 999 | – | 999 | 1,392 |
| Total | 3,444 | 1,700 | 9,829 | 13,362 | 13,273 | 15,062 |
| Of which, not due within five years: | 3,315 | 4,461 | 3,315 | 4,461 | ||
The maturity structure of the loans is presented in the bar chart in the section “Liquidity risk and refinancing risk” under Financial risks.
Loans with floating interest rate
Bilateral term loans with other lenders
Alfa Laval has two loans of EUR 100 million from Svensk Exportkredit that mature in 2027 and 2028 that accrue interest at a floating interest rate based on EURIBOR plus a margin.
The loan of EUR 100 million from Svenska Handelsbanken with maturity in June 2024, was repaid already on December 22, 2023.
The average interest rate for the loans with floating interest rate was 4.62 (2.21) percent at the end of 2023. The Group has chosen not to hedge the loans to fixed interest rate.
Loans with fixed rate
Loan from credit institutions
Alfa Laval has a revolving credit facility of EUR 700 million corresponding to SEK 7,736 million on December 31, 2023 with a banking syndicate. The facility has a maturity of five years from April 2023 and it includes a possibility to increase by EUR 200 million. When utilised, the interest is fixed based on the base rate for the currency of the individual loan plus a mark-up that depends on Alfa Laval’s credit rating. At December 31, 2023 the facility was not utilised.
At year end the commitment fee on the un-utilised facility was 14.0 (14.0) basis points.
Corporate bonds
Alfa Laval has a Euro Medium Term Note (EMTN) programme of EUR 2,000 million. Under the programme, Alfa Laval has four tranches of corporate bonds listed on the Irish stock exchange. Three of them of EUR 300 million each that matures in June 2024, in February 2026 and in February 2029 respectively, whereas the fourth of SEK 1,000 million was raised in May 2023 and matures in November 2025.
At the end of 2023 the loans were accruing interest in the range of 0.250 % – 4.235 % (0.250 % – 1.375 %). The average interest rate at the end of 2023 was 1.14 (0.83) percent.
Commercial papers
The company’s commercial paper programme is SEK 4,000 million with a duration of 1-12 months. It was not utilised at December 31, 2023. When commercial papers are issued, the interest rate is fixed at inception based on current interest level.
The average interest rate for the commercial papers is – (2.17) percent.
Transaction costs
The transaction costs in connection with raising the loans or issuing the bonds have been capitalised and are being amortised over the maturity of the loans. At the end of the year the capitalised amount was SEK 21 (31) million. The current year’s cost for the fee amortisation is SEK -10 (-14) million.
Average interest duration
The average interest duration for all loans including derivatives is 25.7 (29.1) months at the end of 2023.
Financial covenants
The corporate bonds, the commercial papers and the loans from Svensk Exportkredit and the banking syndicate are not linked to any financial covenants that must be fulfilled throughout the life of the loans.