Ericsson carries a significant cash and net cash position to balance operational volatility and secure financial flexibility.

Debt Programs and Facilities

Rating

In addition to a robust cash position, the funding strategy is built on the following principles:

  • primarily central funding raised by the parent company Telefonaktiebolaget LM Ericsson
  • senior unsecured funding
  • diversified funding sources, EMTN program, SEC registered program, domestic commercial paper program and bank funding
  • debt should primarily be long-term with a smooth maturity profile to reduce refinancing risk
  • maintain a stable investment grade rating to secure access to the market at attractive terms and conditions
  • the major part of the funding is provided by issuance under the EMTN program and SEC registered program
  • bank capacity is primarily allocated towards back-up facilities, local funding and trade related products (incl. vendor financing)
  • close and strong bank relationships with a limited number of core relationship banks
  • funding is raised in currencies offering liquidity and attractive terms, FX exposure is dealt with separately as a part of overall centralized FX exposure management
  • debt is normally swapped to floating interest rates to match financial assets.