Debt financing

Funding Policy

Our financing and financial risks are managed under the control and supervision of our Board of Directors. Treasury management is centralized within the Telia Company Group Treasury unit of Telia Company AB. We generally seek to arrange our financing through our parent company Telia Company AB.

Our policy is to have a strong liquidity position in terms of available cash and/or unutilized committed credit facilities.

We finance our operation mainly by borrowing under our uncommitted open-market financing programs directly in Sweden and in the international money markets and capital markets.

Credit facilities

Telia Company has official ratings from Moody's Investors Service (Moody's) and S & P Global Rating  (S&P's).

Uncommitted Facilities

Program

Euro Medium Term Note (EMTN) program

Issuer

Telia Company AB (publ) (formerly TeliaSonera AB)

Description

An uncommitted international program for purpose of long-term borrowing.

Program Size

€ 12,000,000,000

Arranger

Citibank

Dealers

Barclays, Bank of America, BNP, Merrill Lynch, Citi, Crédit Agricole, Goldman Sachs, SEB and The Royal Bank of Scotland

Listing

Luxemburg Stock Exchange

Issuing and Principal Paying Agent

Citibank

 

Program

Flexible Term Note (FTN) program

Issuer

TeliaSonera AB (publ) (formerly Telia AB)

Description

An uncommitted Swedish domestic program for purpose of both short- and long-term borrowing.

Program Size

SEK 12,000,000,000

Arranger

Svenska Handelsbanken

Dealers

Svenska Handelsbanken, Nordea, SEB, Swedbank and Danske Bank

Syndicated Committed Facility

Facility

Multi-currency Revolving Credit Facility with Swinglines

Borrower

Telia Company AB (publ) (formerly TeliaSonera AB)

Description

An committed syndicated facility for short-term financing and back-up purposes.

Program Size

€ 1,500,000,000

Maturity date

September, 2021
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Credit ratings

Telia Company has official ratings from Moody's Investors Service (Moody's) and Standard & Poor's Ratings Services (S&P's).

Rating Agency Long-term rating (outlook) Short-term rating (outlook)
Telia Company AB 
Moody's Baa1 (outlook Stable) Prime-2
Standard & Poor's A-
(outlook Negative)		 A-2

April 3, 2017

Telecom Operator Telia Ratings Affirmed On Hybrid Issuance Offsetting Potential Settlement Costs; Outlook Negative

Sweden-based Telia has issued hybrid securities of about Swedish krona (SEK) 15.1 billion, which mitigate the potential impact on its credit ratios of the outlay that could result from the SEK12.5 billion litigation provision posted in September 2016.
Telia's performance in core markets is relatively sound, and we expect credit metrics will gradually improve.
We are therefore affirming our 'A-/A-2' ratings on Telia, and removing the long-term rating from CreditWatch with negative implications.

September 21, 2016

Telia has recently announced that it has received a proposal from the relevant authorities for the company's possible $1.4 billion (approximately Swedish krona 12 billion) cash settlement of pending litigation. We think Telia may not be able to accommodate a potential outlay of this size at the current rating level. We are therefore putting our 'A-' long-term ratings on CreditWatch negative and affirming our 'A-2' short-term ratings on Telia. We could lower our ratings by one notch if the settlement were confirmed and we then estimated that Telia's future credit metrics would fall short of adequate levels for the rating, including adjusted ratios of free operating cash flow to debt at about 20% in 2017, debt to EBITDA below 2.

 

May 04, 2016

Moody's Investors Service (Moody's) has today downgraded to Baa1 from A3 the senior unsecured ratings of Nordic telecommunications operator Telia Company AB (Telia). Concurrently, Moody's has downgraded to provisional (P)Baa1 from (P)A3 the company's medium-term note (MTN) rating, and has affirmed Telia's Prime-2 (P-2) short-term rating. Moody's also lowered Telia's Baseline Credit Assessment (BCA) to baa2 from baa1. The outlook on all ratings is stable.

March 7, 2016

Standard & Poor's Ratings Services said today that it had affirmed its 'A-' long-term and 'A-2' short-term corporate credit ratings on Sweden-based telecommunications operator TeliaSonera AB. The outlook is stable.

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