The capital structure management seeks to safeguard the ongoing business operations, to ensure flexible access to capital markets and to secure adequate funding at a competitive rate. Capital structure management at Valmet comprises both equity and interest-bearing debt. As at December 31, 2021, total equity was EUR 1,332 million (EUR 1,142 million) and the amount of interest-bearing debt was EUR 417 million (EUR 436 million).
Valmet has not disclosed any long-term financial ratio target for its capital structure. However, the objective of Valmet is to maintain strong capital structure in order to secure customers’, investors’, creditors’ and market confidence. The capital structure is assessed regularly by the Board of Directors and managed operationally by Treasury. Loan facility agreements include customary covenants and Valmet is in clear compliance with the covenants at the end of the reporting period. Valmet had no credit rating at December 31, 2021.
At the end of 2021, gearing was -7 percent (13%) and equity to assets ratio was 42 percent (39%). Interest-bearing liabilities (interest-bearing debt including lease liabilities) amounted to EUR 477 million (EUR 497 million), and net interest-bearing liabilities (interest-bearing net debt including lease liabilities) totaled EUR -88 million (EUR 149 million) at the end of the reporting period.