Funding sources

Refinancing risks and liquidity

At 30 June 2010, the financial liabilities amounted to SEK 42,492m. After additions for net provisions for pensions, cash and cash equivalents, interest-bearing receivables and capital-investment shares, the net debt was SEK 40,846m.

SCA’s financing is partly secured through committed bank credit facilities. With these as protection against refinancing risks, SCA uses short-term borrowing under market programs.

SCA’s policy is that loan documentation should not contain clauses that entitle the lenders to terminate the loans or change coupon rates when changes occur in SCA’s financial key ratios or credit ratings.

As per 30 June 2010, unutilized bank credit facilities amounted to SEK 29,503m. In addition, cash and cash equivalents amounted to SEK 3,999m.

Bank credit facilities

SCA has two syndicated bank facilities: EUR 1,105m¹ (SEK 10,505m) with a final due date in 2012 and EUR 1,000m (SEK 9,507m) with a final due date in 2014. Furthermore, SCA has bilaterally committed credit facilities with banks with a total value of SEK 11,158m maturing SEK 2,658m in 2010, SEK 3,000m in 2011, SEK 2,500m in 2013 and SEK 3,000 in 2015.

¹Original amount was EUR 1,200m with due date in 2010. During March 2007 EUR 1,105m of commitments were extended to 2012 .During 2010, 60 MEUR matured while 35 MEUR matures during 2011.

 Contact Carl-Axel Olson, Senior Vice President, Group Treasurer (direct: +46 8-788 51 31, )