DEBT AND FINANCING
In this section you can find information on Nokian Tyres’ financial position. The company currently has no credit ranking.
In May 2019, Nokian Tyres signed EUR 100 million loan agreement, which terms are linked to sustainability targets. Read more.
SUSTAINABILITY-LINKED BOND
In June 2023, Nokian Tyres issued euro-denominated senior unsecured sustainability-linked notes in a nominal amount of EUR 100 million. Read more .
The Finnish Financial Supervisory Authority approved the listing prospectus drawn up for listing of the notes on July 10, 2023. Read more.
The listing prospectus can be found here.
SUSTAINABILITY-LINKED BOND FRAMEWORK
Nokian Tyres has established a Sustainability-Linked Bond Framework in order to align its sustainability plan with its long-term financing strategy. The Framework has been reviewed by a second-party opinion provider, Sustainalytics.
Under the Framework, the company can issue securities, with a sustainability-linkage. For the securities issued under the Framework, the interest rate, or other financial characteristics, of a security will change if the company fails to meet the predefined Sustainability Performance Target by an agreed review date.
Read more:
Nokian Tyres publishes a Sustainability-Linked Bond Framework (press release May 30, 2023)
Review the Sustainability-Linked Bond Framework:
Nokian Tyres Sustainability-Linked Bond Framework
Review the second-party opinion by Sustainalytics:
Sustainability-Linked Bond Framework Second-Party Opinion
Financial position
|
EUR million |
March 31, 2024 |
March 31, 2023 |
Dec 31, 2023 |
|
Cash and cash equivalents |
283.2 |
357.1 |
414.9 |
|
Interest-bearing liabilities |
678.4 |
403.9 |
638.5 |
|
of which current interest-bearing liabilities |
182.5 |
202.8 |
142.9 |
|
Interest-bearing net debt |
395.1 |
46.8 |
223.6 |
|
Unused credit limits |
793.0 |
795.1 |
831.3 |
|
of which committed |
330.2 |
305.3 |
330.3 |
|
Gearing, % |
29.7% |
3.3% |
16.6% |
|
Equity ratio, % |
57.6% |
67.8% |
58.0% |
In March 2024, one-year extension options were exercised for a total of EUR 300 million in long-term bilateral sustainability-linked term loans. Consequently, the maturity dates for these facilities were extended from April 2025 to April 2026. Additionally, the EUR 100 million bilateral sustainability-linked term loan due in May 2024 was refinanced with a similar three-year term loan that includes extension options of up to two years.
The average interest rate of interest-bearing financial liabilities was 4.5%.
The committed credit limits and the EUR 500 million commercial paper program are used to finance inventories, trade receivables, and subsidiaries in distribution chains, thereby controlling the typical seasonality in the Group’s cash flow.