Debt

The capital structure target is a gearing of around 50%, corresponding to an equity/assets ratio of around 35% or a net debt/equity ratio of around 80%. This underpins the Group’s financial flexibility and its ability to continue investing in its business, while maintaining a strong credit rating.

On 31 December 2016, the gearing was 55.3% (56.7), the equity/assets ratio 33.0% (33.0) and the net debt/equity ratio 84.4% (99.9).

Definitions of key figures

There are no financial covenants, nor material adverse change clause in SKF's bonds or bank loans.

Bonds issued:

Bond due 2 December 2022
Prospect
EUR 500 million
Bond due 29 October 2020
Prospect
EUR 750 million
Bond due 11 September 2019
Prospect
EUR 500 million
Bond due 25 May 2018
Prospect
EUR 500 million

For credit rating on SKF click here

Bank loans:

Loan due 2017 SEK 1,000 million
Loan due 2020 EUR 100 million
Loans due 2021 EUR 200 million

Committed credit facilities, unutilized:

  • EUR 500 million 2019
    Syndicated credit facilities, participated banks: SEB, Handelsbanken, Nordea, Deutsche Bank, Commerzbank, Citibank, Bank of America, HSBC, Intesa Sanpaolo and RBS
  • SEK 3,000 million 2018 (bilateral)
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