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, bilateral loans, commercial paper programs and bank funding.
- Debt should primarily be long-term with a smooth maturity profile to reduce refinancing risk.
- Sustain an investment grade rating to secure access to the credit market on attractive terms and conditions.
- The major part of the funding is provided by issuance under the EMTN 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.