Borrowings
The financing of Husqvarna is managed centrally by Group Treasury in order to ensure efficiency and risk control. Debt is primarily raised at Parent Company level and transferred to subsidiaries as internal loans or capital injections. In this process, various derivatives are used to convert the funds to the required currency. Financing is also undertaken locally, mostly in countries in which there are legal restrictions preventing financing through Group companies.
The bulk of the Group's financing is currently conducted through bilateral loan agreements, a Swedish Medium Term Note (MTN) program and other bond financing. In addition, the Group has a SEK 6,000m unutilized committed revolving credit facility maturing in 2016. Due to the nature of its business, the Group has major seasonal variations in its funding needs. These variations have during 2011 been managed mainly by utilizing the Group's commercial paper (CP) program.
| Borrowings | ||||
|---|---|---|---|---|
| Dec. 31 2010 (SEKm) | Total borrowings 2011 | Facility amount 2011 | Total borrowings 2010 | Facility amount 2010 |
| Medium Term Note Program | 1,535 | 5,000 | 1,540 | 5,000 |
| Other bond loans | 2,169 | - | 1,668 | - |
| Committed revolving credit facility | - | 6,000 | - | 10,000 |
| Long-term bank loans | 3,556 | - | 3,583 | - |
| Financial leases | 209 | - | 221 | - |
| Commercial papers | - | 7,000 | - | 7,000 |
| Other short-term loans | 440 | - | 282 | - |
| Fair value derivate liabilities | 352 | - | 373 | - |
| Total | 8,261 | 18,000 | 7,667 | 22,000 |