Getinge's financial risk management is centralized to capitalize on economies of scale, synergy effects and to minimize operational risks.
The central treasury function is responsible for the Group's borrowing, liquidity management, currency and interest rate risk management, and serves as an internal bank for the Group's financial transactions. In addition to ensuring that Getinge has secure financing, financial transactions are conducted with the aim of limiting the Group's financial risks.
Getinge's ambition is to meet credit ratios equivalent to investment grade and Leverage (Net Debt to Adjusted EBITDA) shall be monitored and kept within 2.5x. Getinge's Leverage may exceed this level temporarily from time to time, in order to finance acquisitions or due to short term effects.
The Group shall aim to diversify the funding sources and the maturity profile to reduce the refinancing risk. Considerations shall be taken to the maturity of the back-up facility, when placing maturities in the capital market.
The available cash in the Group, including unused credit facilities, shall at all times exceed 1 000 MSEK. Furthermore, at most 20 percent of Getinge’s outstanding utilized debt may fall due within 12 months, unless replacement facilities are agreed.
Getinges funding is conducted under the commercial paper programme and by issuance of bonds under the Swedish MTN Program. In addition to the capital market programs, Getinge also has a back-up bank facility (Revolving credit facility) of EUR 470 million with a syndication of six banks and a few bilateral loans from supranationals and commercial banks
For the issue of bonds in the Swedish debt capital markets, Getinge has a domestic Medium Term Note (MTN) program with a framework amount of SEK 6.0 billion, which was established 2018.
Financing Framework for Social Bonds
Getinge has established a Framework to enable issuance of Social Bonds. Getinge has engaged Sustainalytics to provide an independent Second Party Opinion on the Social Financing Framework.