Funding

The debt financing of the Saab Group is managed centrally by Group Treasury in order to ensure efficiency and risk control.

The main principles for the funding strategy of Saab are Flexibility, Diversification and Anticipation of Business Requirements.

It is Saab Group’s policy that in order to meet business requirements the Group should always have free cash together with unutilized committed credit facilities on an amount of at least 3 Bn SEK, adjusted for loans with maturity within 12 months.

However, the free cash shall never be less than the amount of the higher of:

  • 10 percent of Group turnover
  • 50 percent of the aggregated amount of outstanding on-demand guarantees of the three largest beneficiaries 

The group funding strategy is focused on minimizing refinancing risk and diversification of the funding sources as well as maturities. In order to achieve this Saab currently have the following sources:

  • Revolving Credit facility                                    MSEK 6,000
  • Commercial Paper Programme (CP)               MSEK 5,000
  • Medium Term Note Programme (MTN)           MSEK 6,000 
  • Schuldschein loan                                            MEUR 100

Market conditions and alternative sources of funding are continuously evaluated.

The Group has close and strong relationships with a limited number of core relationship banks.