Nobina conducts highly capital-intensive operations. Access to capital is a prerequisite for enabling the operation of a successful public transportation business.
Nobina has as its primary strategy the financing of the purchase of vehicles with finance leases or hire purchase loans with a term of ten years at a residual value of 10 percent. Lease liabilities are recognised as finance leases and are, like loans, visible in the balance sheet. In addition, some financing is raised in the green bond market for which Nobina has pledged collateral. Nobina’s liabilities are primarily attributable to the financing of investments in buses and equipment used in operations, but also include strategic debt financing.
As of February 29, 2020, the interest-bearing debt amounted to SEK 6,387 (6,655) million. Further information on the group’s debt structure can be found in note 26 in Nobina’s annual report.
For further information regarding Nobina’s green bond financing please see our bond section.
Nobina's central treasury function ensures adaptation of the group’s funding strategy according to Nobina’s operations in order for a sustainable and stable capital structure to be achieved and maintained and that the financial exposure is in line with the Group’s financial policy.
Nobina's financial risk management is centralized too in order to capitalize on economies of scale and synergy effects and to minimize operational risks. The central treasury function is responsible for the Group's borrowing, lines of credit, liquidity management, currency and interest rate risk management.
To ensure access to a broad base of financing sources, it is a goal for Nobina to maintain an investment grade credit rating and a level of indebtedness that over the long term permits Nobina to be viewed as an attractive borrower. In support of this goal, Nobina has established financial targets that can be viewed here.
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