Vasakronan is one of the largest Swedish borrowers in the capital markets, and at 30 September 2023, borrowings amounted to SEK 77,1 billion. Vasakronan is owned by the First, Second, Third and Fourth Swedish national pension funds.
Vasakronan’s borrowing strategy is based on achieving a diversified funding base through borrowing in the capital markets and from banks while maintaining a healthy reserve in the form of a credit facility arranged with the company’s owners.
Vasakronan is a regular market issuer of commercial paper and bonds. Bonds with a short remaining tenor are extended, preferably with longer tenors. More frequent, smaller issues achieve a more even maturity structure in the loan portfolio, which reduces financing risk. All foreign currency borrowing is hedged through currency derivatives into the Swedish krona.
Breakdown of Vasakronan’s funding sources, 30 September 2023.
