Funding strategy

UPM has a strong cash flow and industry-leading balance sheet that mitigates risks and enables value-enhancing strategic actions. The group manages its financing activities, debt portfolio and financial resources to ensure optimum financing arrangements minimising simultaneously financial expences and refinancing risk while optimising liquidity.

An Investment Grade rating is an important element in our financing strategy. UPM’s financial policy on leverage is based on a net debt/EBITDA ratio of 2 or less.




Debt programmes

EUR millions Total Amount Outstanding  
EMTN Programme 3,000 1,750 IconPdf.png
Domestic Commercial Paper Programme 1,000 175

Outstanding bonds

  Amount ​Issued ​Maturity ​Coupon  
Fixed Rate Note ​USD 375m 1997 ​2027 ​7.450% IconPdf.png
Fixed Rate Note UPM_Leaf_icon_green.jpg EUR 750m 2020 2028 0.125% IconPdf.png
Fixed Rate Note UPM_Leaf_icon_green.jpg EUR 500m 2021 2031 0.500% IconPdf.png
Fixed Rate Note UPM_Leaf_icon_green.jpg EUR 500m 2022 2029 2.250% IconPdf.png

Liquidity reserves

EUR millions Total Amount Outstanding Available Maturity
Committed Syndicated Credit Facility *) 750 0 750 2027
Committed Bilateral Credit Facilities*)  300 0 300 2025
Committed Bilateral Credit Facilities*) 200 0 200 2027
Rolling Committed Overdraft Facility 159 0 159 2023

*) linked to biodiversity and climate targets


Maturity structure on 31 March 2022


Sustainable finance


UPM is in a unique position to advance circular economy and to take the world towards a future beyond fossils. Responsibility is integrated into UPM's Biofore strategy as a solid foundation for long-term value creation. Responsibility also plays an important role in UPM's financing and gives the investors a great opportunity to promote activities, such as climate change mitigation and adaptation and the UN Sustainable Development Goals together with us.  


Revolving Credit Facility


UPM is one of the first companies to link the pricing mechanism of a syndicated revolving credit facility to both biodiversity and climate targets.


Green Finance Framework


UPM has established a framework for green financing which describes the activities and investments that supports UPM in its way towards Beyond Fossils.  The framework encompasses all debt instruments with funds dedicated for green activities and investments.

‘Use-of-proceeds’-based financing such as loans and bonds form an additional part of UPM’s sustainable financing.

Green Finance Framework is based on the 2018 version of the Green Bond Principles published by the International Capital Markets Association (ICMA) and the 2020 version of the Green Loan Principles, published by the ICMA, the Loan Market Association (LMA), the Asia Pacific Loan Market Association (APLMA) and the Loan Syndications and Trading Association (LSTA) respectively.

Eligible categories

The net proceeds of the green debt raised by UPM will be used to finance or re-finance Eligible Assets and Projects from following categories:

  1. Sustainable forest management
  2. Climate positive products and solutions
  3. Pollution prevention and control, including waste management
  4. Water and wastewater management
  5. Energy efficiency initiatives
  6. Renewable energy

UPM will annually publish a report on the allocation and impact of Green Bonds issued under this framework.


Credit ratings

  Rating Outlook Latest report
Moody's Baa1 Stable IconPdf.png
Standard Poor's BBB Stable IconPdf.png

Rating history


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