Treasury Policy is carried out by the Treasury of Group in co-operation with subsidiaries under policies approved by the Board of Directors of Caverion Group. Subsidiaries are responsible for providing the Group Treasury with timely and accurate information on financial position, cash-flows and foreign exchange position in order to ensure the Group’s efficient cash and liquidity management, funding and risk management.
The Group Treasury is responsible for maintaining sufficient funding, availability of different funding sources and controlled maturity profile of external loans. The Group Treasury evaluates and monitors continuously the amount of funding required in the Group’s business activities to ensure it has adequate liquid fund to finance its operations and repay its loans at maturity.
Financing position at the end of 2015
Caverion’s cash and cash equivalents amounted to EUR 68.1 million at the end of December (12/2014: EUR 98.8 million). In addition, Caverion has undrawn revolving credit facilities amounting to EUR 100.0 million and undrawn overdraft facilities amounting to EUR 19.0 million.
Our strong cash position enabled voluntary repayment of borrowings by EUR 34.1 million in January-December 2015. The Group’s interest-bearing loans and borrowings amounted to EUR 97.9 million at the end of December (12/2014: EUR 149.0 million), and the average interest rate after hedges was 1.3 percent. Fixed-rate loans after hedges against interest rate rise accounted for almost 100 percent of the Group’s borrowings. Approximately 92 percent of the loans have been raised from banks and other financial institutions, and approximately 6 percent from insurance companies. A total of EUR 22.7 million of the interest-bearing loans and borrowings will fall due during the next 12 months.
Caverion’s external loans are subject to a financial covenant based on the ratio of the Group’s net debt to EBITDA. Net debt amounted to EUR 29.8 million at the end of December (12/2014: EUR 50.2 million).