Sandvik has adopted a centralized funding strategy whereas funding is primarily raised by the parent company and Sandvik Treasury AB and distributed throughout the Group by subsidiary loans. The aim is to utilize a broad variety of funding sources and to distribute the maturities over time. To operate in the short term Capital markets, back-up facilities are in place.
In order to reduce the refinancing risk, the Group strives for an adequate distribution of maturity dates. At September 30, 2021, the average payback period was 3 years.
In Sandvik's finance policy, the liquidity and financing risks are regulated such that the Group's capital employed, less the cash, shall in addition to equity, pensions liabilities, deferred tax and long-term provisions be financed long-term.
Also see information on Sandvik's credit rating by Standard and Poor's.