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F4 Interest-bearing liabilities | 12 Months Ended
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Dec. 31, 2020
Borrowings [Abstract] |
F4 Interest-bearing liabilities |
F4 | Interest-bearing liabilities
As of December 31, 2020, the Company’s outstanding interest-bearing liabilities were SEK 30.2 (37.7) billion.
Interest-bearing liabilities |  |  |  |
|  | 2020 |  | 2019
Borrowings, current |  |  |  |
Current part of non-current borrowings |  | 5,269 |  | 7,946
Other borrowings, current |  | 2,673 |  | 1,493
Total borrowings, current |  | 7,942 |  | 9,439
Borrowings, non-current |  |  |  |
Notes and bond loans |  | 22,008 |  | 21,898
Other borrowings, non-current |  | 210 |  | 6,359
Total borrowings, non-current |  | 22,218 |  | 28,257
Total interest-bearing liabilities |  | 30,160 |  | 37,696
Reconciliation of liabilities arising from ﬁnancing activities |  |
|  | 2020 |  | 2019
Opening balance |  | 47,578 |  | 43,523
Cash ﬂows |  |  |  |
Proceeds from issuance of borrowings |  | 4,400 |  | 4,851
Repayment of borrowings |  | (8,643) |  | (4,476)
Lease payments |  | (2,417) |  | (2,990)
Non-cash changes |  |  |  |
Effect of foreign exchange movement |  | (4,030) |  | 1,748
Revaluation due to changes in credit risk |  | (99) |  | 651
Other changes in fair value |  | 136 |  | 343
Acquisition of new lease contracts |  | 2,604 |  | 2,300
Reclassiﬁcation 1) |  | — |  | 1,767
Other non-cash movements |  | (69) |  | (139)
Closing balance |  | 39,460 |  | 47,578
1) Repayment of borrowings in 2019 includes repayment of a loan, not classified as borrowings, to a minority shareholder in a subsidiary. To secure long-term funding, the Company uses notes and bond programs together with bilateral research and development loans. All outstanding notes and bond loans are issued by the Parent Company under its Euro Medium Term Note (EMTN) program or under its US Securities and Exchange Commission (SEC) Registered program. Bonds issued at a fixed interest rate are normally swapped to a floating interest rate using interest rate swaps under the Asset and liability management mandate described in note F1 “Financial risk management.” Total weighted average interest rate cost for the long-term funding during the year was 2.18% (3.26%). Borrowings issued by the Parent Company are held at fair value with changes in value due to changes in credit risk recognized in Other comprehensive income (OCI). Due to the COVID-19 pandemic, capital market became very volatile at the end of first quarter 2020, hence credit spreads on corporate bonds widened significantly. Credit spreads have decreased substantially in subsequent quarters, resulting in a net positive impact of SEK 0.1 billion recognized in the OCI. Foreign exchanges rates also fluctuated significantly over the period, notably SEK has strengthened against USD and EUR. This resulted in a significant reduction in the carrying values of loans and bonds at the end of the year (see table below), and reduction in contractual interest paid (see note F2 “Financial income and expenses”) and weighted average interest rate cost.
Notes, bonds and bilateral loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Issued-maturing |  | Nominal amount |  | Coupon |  | Currency |  | Maturity date |  | Carrying value (SEK million) 2020 |  | Changes in fair value due to changes in credit risk 2020 |  | Cumulative changes in fair value due to changes in credit risk 2020 |  | Carrying value (SEK million) 2019 |  |
Notes and bond loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2020–2030 1) |  | 200 |  | 3.02% |  | USD |  | Dec 30, 2030 |  | 1,698 |  | 68 |  | 68 |  | — |  |
2010–2020 1) |  | 170 |  |  |  | USD |  | Dec 23, 2020 |  | — |  | (16) |  | — |  | 1,601 |  |
2012–2022 |  | 1,000 |  | 4.125% |  | USD |  | May 15, 2022 |  | 8,537 |  | (165) |  | 144 |  | 9,695 |  |
2017–2021 |  | 500 |  | 0.875% |  | EUR |  | Mar 1, 2021 |  | 5,034 |  | (38) |  | 3 |  | 5,267 |  |
2017–2024 |  | 500 |  | 1.875% |  | EUR |  | Mar 1, 2024 |  | 5,290 |  | (63) |  | 145 |  | 5,512 |  |
2017–2025 1) |  | 150 |  | 2.741% |  | USD |  | Dec 22, 2025 |  | 1,278 |  | 22 |  | 50 |  | 1,424 |  |
Total notes and bond loans |  |  |  |  |  |  |  |  |  | 21,837 |  | (192) |  | 410 |  | 23,499 |  |
Bilateral loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2019–2025 2) |  | 150 |  |  |  | USD |  | Dec 18, 2025 |  | 1,237 |  | 35 |  | 9 |  | 1,371 |  |
2013–2020 3) |  | 684 |  |  |  | USD |  | Nov 6, 2020 |  | — |  | 32 |  | — |  | 6,345 |  |
2017–2023 2) |  | 220 |  |  |  | USD |  | Jun 15, 2023 |  | 1,826 |  | (5) |  | 27 |  | 2,078 |  |
2019–2024 3) |  | 281 |  |  |  | USD |  | July 31, 2024 |  | 2,320 |  | 31 |  | 15 |  | 2,606 |  |
Total bilateral loans |  |  |  |  |  |  |  |  |  | 5,383 |  | 93 |  | 51 |  | 12,400 |  |
1) Private Placement, Swedish Export Credit Corporation (SEK). In December 2020, the Company refinanced Swedish Export Credit Corporation (SEK) of USD 170 million with a new bond loan of USD 200 million, net increase in funding of USD 30 million. The new facility is set to mature in 2030. The terms of the existing loan note (USD 150 million) maturing in December 2025 was modified from a floating interest to a fixed coupon with the same maturity date. 2) Nordic Investment Bank (NIB), R&D project financing. 3) European Investment Bank (EIB), R&D project financing.

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