Funding strategy

UPM has a strong cash flow and balance sheet that mitigates risks and enables value-enhancing strategic actions. The group manages its financing activities, debt portfolio and financial resources to ensure optimal 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.




*) linked to biodiversity and climate targets


Maturity structure on 31 March 2024


Sustainable finance


UPM has a clear role in the transition towards a future beyond fossils and is in a unique position to advance circular economy. Responsibility also plays an important role in UPM’s financing and gives investors an opportunity to promote activities such as climate change mitigation and adaptation and the UN Sustainable Development Goals (SDGs). 


Revolving Credit Facility


UPM has been one of the first companies to link the pricing mechanism of a syndicated revolving credit facility (RCF) to both biodiversity and climate targets. The two key performance indicators (KPIs) used are:

  • a net positive impact on biodiversity in company-owned forests in Finland
  • a 65% reduction in fossil CO2 emissions from fuels and purchased electricity by 2030 from 2015 levels, in line with our commitment to UN Business Ambition for 1.5°C.

Green Finance Framework


UPM published its first Green Financing Framework in 2020 and has since issued three Green Bonds. The updated Green Finance Framework is a consistent and tangible step to further align our financing strategy with our sustainability targets.

The updated Green Finance Framework has been established in accordance with the Green Bond Principles (GBP) 2021 (with June 2022 Appendix I), as well as the APLMA, LMA and the LSTA Green Loan Principles (GLP) 2023. With this framework, UPM may utilise a variety of Green Finance Instruments, including but not limited to Green Bonds and Green Loans. The Green Finance Framework is aligned with the core components of the GBP and GLP, including the recommended External Review component.

Eligible Green Categories

An amount at least equal to the proceeds from the Green Finance Instrument issued by UPM will be exclusively used to finance and/or refinance, in whole or in part, projects, assets, expenditures or activities that are in accordance with the Eligible Green Projects and Assets from following categories:

  1. Sustainable forest and plantation management
  2. Climate positive and circular bioeconomy adapted products and solutions
  3. Renewable or CO2-free energy
  4. Pollution prevention and control, including waste management
  5. Sustainable water and wastewater management
  6. Energy efficiency initiatives

UPM is committed to transparent allocation and impact reporting on any relevant Green Finance Instrument and will annually publish a report, until maturity of any issued Green Finance Instruments. UPM will also engage an independent external auditor to provide an annual limited assurance on both allocation and impact reporting, until the proceeds of the green finance instrument have been fully allocated.

Second Party Opinion

S&P Global Ratings has reviewed the Framework under its updated “Shades of Green” methodology and assessed its alignment with the ICMA Green Bond Principles. UPM´s updated Green Finance Framework has received the highest "Dark Green" shading from S&P Global Ratings, in line with the framework established in 2020.


Previous framework and the second party opinion as well as all published Green Bond Reports can be found form below links:


Credit ratings


Rating history


Find the latest information


Latest news