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

 

Debt programmes

EUR millions Total Amount Outstanding  
EMTN Programme 3,000 750 IconPdf.png
Domestic Commercial Paper Programme 1,000 0
 
 

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
 
 

Liquidity reserves

EUR millions Total Amount Outstanding Available Maturity
Committed syndicated credit facility *) 750 0 750 2025
Committed bilateral facilities 550 0 550 2023
Rolling committed credit overdraft 159 2 157 2021

*) linked to biodiversity and climate targets

 
 

Maturity structure on 30 September 2020

 
 
 
 

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.

 
 

UPM's 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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