Financing

FINANCIAL STRUCTURE

We fund our operations using a combination of equity, interest-bearing liabilities and other liabilities. The financial structure of Sagax is designed with a clear focus on operating cash flow and interest coverage ratio. This is expected to create both good prerequisites for expansion and attractive return on equity. Sagax endeavours to have well-balanced fixed-interest and debt maturity profiles to secure operating cash flow. Sagax seeks to gain a balance between an attractive return on equity and an acceptable level of risk.

The company has a rating of Baa2 with stable outlook from Moody's Investors Service.

FINANCIAL POLICY

The financial policy sets guidelines and rules for the financial operations to illustrate how financial risks are to be limited. It also states how to report on Sagax’s financial affairs to the Board. The financial policy establishes the division of responsibility and administrative rules, and also provide guidance in the daily work of the financing department. 

Sagax has the following guidelines for its financial operations.

• A debt ratio of no more than 50%.
• An interest coverage ratio exceeding 3.0x.
• Net debt in relation to EBITDA not above 8.0x.