Fabege’s financing operations are governed by the company’s financial policy, which is established by the Board of Directors. Long-term credit lines provide safe and flexible financial management.
Capital structure
The balance between shareholders’ equity and borrowed capital is a key issue for the company. Fabege aims to have a strong financial position. The company’s objective is to achieve an equity/assets ratio of at least 30 per cent and an interest coverage ratio of at least 2.0.
Finance function
Fabege’s financial management, which is a central unit in the Parent Company, is responsible for the Group’s borrowing, liquidity management and financial risk exposure.
Finance policy
Fabege’s financing operations are governed by the company’s financial policy, which is established by its Board of Directors. The policy states the primary task of the financial management is to ensure that the company always maintains stable, well-balanced and cost-efficient financing. The fixed-rate period must take into account circumstances at any given time, but must essentially be short. Potential currency exposures must be minimised. The policy also states the counterparties that the company is permitted to deploy and governs the authority and delegation of responsibility for the organisation.
Financial goals, per 31 March 2012
|
Goal |
Result |
| Equity/assets ratio, % |
30 |
38 |
| Interest coverige ratio, times |
2.0 |
1.8 |
| Loan-to-value ratio, % |
60 |
57 |