Debt information
Nokian Tyres has a robust cash flow and balance sheet, facilitating strategic investment projects and mitigating risks.
Nokian Tyres Group’s funding sources include loans, credit facilities, and access to debt capital markets. The company currently has no credit ranking.
Debt key figures
| 2023 | |
| Interest-bearing net debt, EUR million | 223.6 |
| Gearing, % | 16.6% |
| Equity ratio, % | 58.0% |
| Net debt to segments EBITDA ratio | 1.3 |
Loans and credit facilities
EUR 150 million loan with European Investment Bank
On July 31, 2024, Nokian Tyres signed a EUR 150 million loan agreement with the European Investment Bank (EIB). The eight-year loan will support Nokian Tyres’ strategic investment project in Romania, where the company is building the world’s first zero CO2 tire factory.
EUR 200 million sustainability-linked Revolving Credit Facility
On December 8, 2023, Nokian Tyres signed a syndicated sustainability-linked revolving credit facility of EUR 200 million with a group of five banks. The interest margin of the revolving credit facility increases or decreases dependent on Nokian Tyres meeting sustainability performance targets related to Scope 1, 2 and 3 reductions. The new facility replaced a total of EUR 175 million of earlier revolving credit facilities, and it is used as a backup for general corporate purposes. The three-year facility has two one-year extension options.
EUR 500 million Finnish commercial paper program
Nokian Tyres has a EUR 500 million Finnish commercial paper program with five co-operation banks. The arrangers for the program are Nordea Bank Abp, OP Corporate Bank Plc, Danske Bank A/S Finland Branch, Skandinaviska Enskilda Banken AB (publ) Helsinki Branch and Swedbank AB Finnish Branch. Neither Nokian Tyres nor the notes have a credit rating.
Bonds issued by Nokian Tyres
EUR 100 million sustainability-linked bond
On June 7, 2023, Nokian Tyres issued senior unsecured sustainability-linked notes in a nominal amount of EUR 100 million. The 5-year bond matures on June 14, 2028 and bears interest at the rate of 5.125 per cent per annum.
June 7, 2023
Nokian Tyres issues a EUR 100 million sustainability-linked bond
KPIs for sustainability-linked bond | Bond baseline 2022 | Actual 2023* |
Scope 1 and 2 emission intensity | 0.42 tCO2eq / production t | 0.16 tCO2eq / production t |
Scope 3 emission intensity (use of sold products) | 23.71 tCO2eq / production t | 25.10 tCO2eq / production t |
*Figures for 2023 do not include discontinued operations (Russian operations). Therefore, the figures in the table are not fully comparable between years. Note. Audited emission data is available in our Sustainability Report. | ||
Sustainability-linked bond framework
Nokian Tyres has established a Sustainability-Linked Bond Framework to align its sustainability plan with its long-term financing strategy. The Framework has been reviewed by a second-party opinion provider, Sustainalytics.
Under the Framework, the company can issue securities, with a sustainability-linkage. For the securities issued under the Framework, the interest rate, or other financial characteristics, of a security will change if the company fails to meet the predefined Sustainability Performance Target by an agreed review date.
Nokian Tyres Sustainability-Linked Bond Framework (pdf)
Sustainability-Linked Bond Framework Second-Party Opinion (pdf)