Note 29. Borrowings and net debt
| Nettoskuld | ||||
| MSEK | Koncernen | |||
| MSEK | 2024 | 2023 | ||
| Net debt | ||||
| Consolidated | ||||
| SEK millions | 2024 | 2023 | ||
| Kreditinstitut | Credit institutions | 115 | 145 | |
| Svensk Exportkredit | Swedish Export Credit | 2,292 | 2,207 | |
| Obligationslån | Corporate bonds | 7,867 | 10,921 | |
| Lån* | Borrowings* | 10,274 | 13,273 | |
| Likvida medel och kortfristiga placeringar | Cash and cash equivalents and current deposits | -7,818 | -5,863 | |
| Nettoskuld exklusive leasingskulder*** | Net debt excluding lease liabilities*** | 2,455 | 7,410 | |
| Leasingskulder** | Lease liabilities** | 3,038 | 2,601 | |
| Nettoskuld inklusive leasingskulder*** | Net debt including lease liabilities*** | 5,493 | 10,011 | |
* 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:
| Lån | ||||||
| MSEK | Koncernen | |||||
| MSEK | 1 januari | Kassaflöden | Valutakurseffekter | 31 december | ||
| Loans | ||||||
| Consolidated | ||||||
| SEK millions | January 1 | Cash flows | Exchange rate effects | December 31 | ||
| År: | Year: | |||||
| 2023 | 2023 | 15,062 | -1,696 | -93 | 13,273 | |
| 2024 | 2024 | 13,273 | -3,186 | 187 | 10,274 |
The loans are distributed among currencies as follows:
| Förfall av lån per valuta | ||||||||
| MSEK | Koncernen | |||||||
| Kortfristigt | Långfristigt | Totalt | ||||||
| MSEK | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||
| Provision for lifetime expected credit losses | ||||||||
| Consolidated | ||||||||
| Current | Non-current | Total | ||||||
| SEK millions | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||
| Valuta: | Currency: | |||||||
| BRL | BRL | 23 | 17 | – | – | 23 | 17 | |
| CAD | CAD | 3 | 1 | – | – | 3 | 1 | |
| DKK | DKK | 9 | 6 | – | – | 9 | 6 | |
| EUR | EUR | 7 | 3,371 | 9,172 | 8,830 | 9,179 | 12,201 | |
| GBP | GBP | 15 | 20 | – | – | 15 | 20 | |
| INR | INR | 5 | 8 | – | – | 5 | 8 | |
| PLN | PLN | 41 | 21 | – | – | 41 | 21 | |
| SEK | SEK | 1,000 | – | – | 999 | 1,000 | 999 | |
| Totalt | Total | 1,102 | 3,444 | 9,172 | 9,829 | 10,274 | 13,273 | |
| Varav förfallande efter fem år: | Of which, not due within five years: | – | 3,315 | – | 3,315 | |||
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 average interest rate for the loans with floating interest rate was 3.72 (4.62) percent at the end of 2024. 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 8,029 million on December 31, 2024 with a banking syndicate. The facility has a maturity of five years from April 2023 and includes a possibility to increase it by EUR 200 million. On December 31, 2024 the facility was not utilized.
At year end the commitment fee on the un-utilised facility was 14.0 (14.0) basis points.
Corporate bonds
On December 31, 2024, Alfa Laval had three tranches of corporate bonds listed on the Irish stock exchange. Two of them corresponding to EUR 300 million each that mature in February 2026 and in February 2029 respectively, whereas the third of SEK 1,000 million matures in November 2025.
At the end of 2024 the loans were accruing interest in the range of 0.875 % – 4.235 % (0.250 % – 4.235 %). The average interest rate at the end of 2024 was 1.52 (1.14) percent.
Commercial papers
The commercial paper programme amounts to SEK 4,000 million with varying maturity dates during the first quarter of 2025. SEK 0 million was utilized at December 31, 2024.
Transaction costs
The transaction costs in connection with raising the loans or issuing the bonds have been capitalized and are being amortized over the maturity of the loans. At the end of the year the capitalized amount was SEK 12 (21) million. The current year’s cost for the fee amortization is SEK -9 (-10) million.
Average interest duration
The average interest duration for all loans is 23 (26) months at the end of 2024.
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.