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Consolidated Financial Statements

Note 18 - Borrowings

Country/Area Breakdown
Repayment Schedule of Long-term Debt
Bonds Loans in Long-term Debt
Short-term Borrowings
Finance Lease Liabilities
Leasing Liabilities

Loans from international credit institutions consist of borrowings with varying maturities, the latest being in 2023, and with either fixed or floating interest rates ranging from 1.68% to 9.99%. The majority of Group loans are denominated in Euros, the principal other currencies being Swedish Kronas and US Dollars. At 31 December 2001 the Group's unused credit facilities totalled EUR 2 809.4
(EUR 1 828.0) million.

As permitted in Finland, a portion of annual pension payments has been borrowed from pension insurance companies at specified interest rates; the Group may elect to borrow up to 55% of the annual pension contribution. Principal payments are due annually based on 7% of the outstanding balance on the anniversary date of the loan and the interest rate on such loans, as regulated by the Finnish Ministry of Social Affairs and Health, was 5.75% at 31 December 2001.

During 2001 Stora Enso bought back debt with a nominal value of SEK 924 million (EUR 99.3) million with a gain in financial items of SEK 10.7 (EUR 1.2) million, USD 3 (EUR 3.4) million with a loss of USD 0.3 (EUR 0.3) million and EUR 3 million resulting in a loss of EUR 0.1 million.

In 2000 Stora Enso bought back debt with a nominal value of SEK 1 200 (EUR 141) million, resulting in a gain in financial items of SEK 18 (EUR 2.1) million, less related tax of SEK 5 (EUR 0.6) million. The purchase was financed with a new SEK bond issue and, in connection with the early debt repayment, the Group terminated swaps hedging these issues.

Net interest-bearing liabilities are designated as such on the Balance Sheet and amounted to EUR 4 819.9 (EUR 5 182.7) million at 31 December 2001; most of this net liability is represented by long-term debt. The breakdown of net interest-bearing liabilities and operating capital by principal country/area is detailed below:
 
Country/Area Breakdown As at 31 December
EUR million 2000 2001 2000 2001
  Net Interest-bearing
Liabilities		 Operating
Capital
Euro area 2 486.3 -593.2 6 477.5 6 570.1
Sweden 838.8 1 409.9 3 244.3 2 799.0
USA 1 643.5 3 351.1 5 638.5 5 503.9
Canada -0.9 -29.9 643.2 613.1
China - 228.8 225.8 252.7
UK -56.0 12.8 79.2 92.7
Other 271.0 440.4 248.4 274.9
Total 5 182.7 4 819.9 16 556.9 16 106.4
Repayment Schedule of Long-term Debt As at 31 December
EUR million 2002 2003 2004 2005 2006 2007- Total
Bond loans 44.3 288.1 365.0 68.1 516.3 2 463.7 3 745.5
Loans from credit institutions 90.7 57.2 132.0 57.4 29.8 416.9 784.0
Pension loans 66.6 12.9 0.5 0.4 0.4 4.9 85.7
Leasing liabilities 26.7 23.5 32.2 50.3 26.2 623.9 782.8
Other long-term liabilities 1.7 4.2 1.6 1.0 0.8 4.7 14.0
Total Long-term Debt 230.0 385.9 531.3 177.2 573.5 3 514.1 5 412.0
               
Current Liabilities: Repayable within the next 12 months             230.0
Long-term Liabilities: Repayable after 12 months           5 182.0
Bonds Loans in Long-term Debt

Issue /
Maturity		 Description
of		 Interest
Rate		 Currency
of		 Nominal
Value		 Outstanding As at 31 December Carrying Value As at 31 December
Dates Bond % Bond Issued 2000 2001 2000 2001
  Currency million EUR miliion
Fixed Rate                
1991-2006 Series C Senior Notes 2006 9.99 USD 50.4 50.4 50.4 54.2 60.6
1993-2003 Series B Senior Notes 2003 * 8.64 USD 65.0 65.0 62.0 69.9 70.4
1993-2003 Swedish Medium Term Note * 8.96 SEK 350.0 350.0 328.0 39.6 49.1
1993-2003 Swedish Medium Term Note * 9.50 SEK 255.0 255.0 89.0 28.9 13.3
1993-2004 Series B Senior Notes 2004 7.11 USD 7.0 7.0 7.0 7.5 8.1
1993-2019 Series C Senior Notes 2019 8.60 USD 50.0 50.0 50.0 53.7 56.7
1994-2004 Swedish Medium Term Note * 8.00 SEK 500.0 500.0 50.0 23.1 5.9
1996-2006 Swedish Medium Term Note 7.90 SEK 470.0 470.0 470.0 53.2 86.4
1997-2004 Senior Notes Series A 2004 6.71 USD 81.0 81.0 81.0 87.0 90.7
1997-2004 Finnish Serial Bond 1/1997 * 6.00 FIM 1 484.0 1 484.0 1 466.2 249.6 246.6
1997-2007 Senior Notes Series B 2007 6.82 USD 102.0 102.0 102.0 109.6 112.5
1997-2009 Senior Notes Series C 2009 6.90 USD 48.5 48.5 48.5 52.1 53.2
1997-2012 Senior Notes Series D 2012 7.00 USD 22.5 22.5 22.5 24.2 24.4
1997-2017 Senior Notes Series E 2017 7.14 USD 23.0 23.0 23.0 24.7 24.6
1997-2017 Euro Medium Term Note * 4.105 JPY 10 000.0 10 000.0 10 000.0 93.5 87.2
1998-2002 Swedish Medium Term Note * 5.50 SEK 200.0 200.0 150.0 17.0 16.1
1998-2008 Swedish Medium Term Note * 4.00 SEK 264.4 250.0 250.0 28.3 26.9
1998-2009 Senior Notes Series F 2009 6.93 USD 30.0 30.0 30.0 32.2 32.7
1998-2018 Senior Notes Series G 2018 7.24 USD 65.0 65.0 65.0 69.9 68.0
1998-2023 Senior Notes Series H 2023 7.30 USD 65.0 65.0 65.0 69.9 66.9
1999-2006 Swedish Medium Term Note * 5.90 SEK 500.0 143.0 43.0 11.3 4.5
1999-2008 Swedish Fixed Real Rate * 4.00 SEK 105.3 105.3 100.0 11.3 10.8
2000-2003 Euro Medium Term Note * 5.25 SEK 1 000.0 1 000.0 1 000.0 113.2 108.2
2000-2005 Swedish Medium Term Note * 6.50 SEK 100.0 100.0 100.0 11.3 10.8
2000-2006 Euro Medium Term Note * 6.25 SEK 2 000.0 2 000.0 2 000.0 226.5 214.1
2000-2007 Eurobond 6.375 % Notes 2007 * 6.375 EUR 850.0 850.0 850.0 850.0 840.7
2000-2007 Euro Medium Term Note * 6.90 SEK 200.0 200.0 200.0 22.6 21.5
2001-2003 Euro Medium Term Note * 5.25 SEK 500.0 - 500.0 - 54.2
2001-2006 Euro Medium Term Note * 6.25 SEK 2 000.0 - 2 000.0 - 219.3
2001-2011 Global 7.375 % Notes 2011 * 7.375 USD 750.0 - 750.0 - 862.5
Loans matured and extinguished in 2001             157.7 -
Total Fixed Rate Bond Loans             2 592.0 3 546.9
                 
Floating Rate
1997-2007 Euro Medium Term Note * Libor+0.35 FIM 110.0 110.0 110.0 18.5 18.5
1998-2002 Swedish Medium Term Note * Stibor+0.25 SEK 100.0 100.0 100.0 11.3 10.8
1998-2008 Euro Medium Term Note * Libor+0.35 USD 30.0 30.0 30.0 32.2 34.0
1998-2008 Euro Medium Term Note * Libor+0.33 USD 40.0 40.0 40.0 43.0 45.4
1999-2005 Swedish Medium Term Note * Stibor+0.318 SEK 300.0 300.0 300.0 34.0 32.3
1999-2005 Euro Medium Term Note Stibor+0.45 SEK 110.0 110.0 110.0 12.5 11.8
2000-2007 Swedish Medium Term Note * Euribor+0.75 EUR 10.0 10.0 10.0 10.0 10.0
2000-2010 Euro Medium Term Note * Euribor+0.8 EUR 25.0 25.0 25.0 25.0 25.0
2001-2002 Swedish Medium Term Note * Stibor+0.12 SEK 100.0 - 100.0 - 10.8
Loans matured and extinguished in 2001           45.2 -
Total Floating Rate Bond Loans           231.7 198.6
                 
Total Bond Loans           2 823.7 3 745.5
                 
* Parent company liabilities              
Short-term Borrowings  
As at 31 December
EUR million 2000 2001
Short-term loans 1 078.0 917.2
Derivative financial instruments (Note 20) - 80.3
  1 078.0 997.5
In accordance with IAS 39, financial instrument comparatives for 2000 have not been restated.


Group short-term loans are principally denominated in euros (49.4%), US dollars (31.0%) and Swedish kronas (10.1%), with maturities of between 1 week and 10 months. Short-term loans consist mainly of commercial paper with applicable weighted average interest rates being 3.68% (5.14%) for the euro, 5.25% (n/a) for the US dollar and 3.88% (4.28%) for the Swedish krona.

Finance Lease Liabilities
Stora Enso has a number of finance leasing agreements for machinery and equipment maturing between 2008 and 2015 for which capital costs of EUR 818.7. (EUR 853.3) million are included in machinery and equipment; the depreciation thereon was EUR 66.7 (EUR 28.3) million. The aggregate leasing payments amounted to EUR 80.2 (EUR 54.0) million, the interest element being EUR 44.1 (EUR 14.4) million.

 
Leasing Liabilities  
As at 31 December
EUR million 2000 2001
Minimum lease payments    
Less than 1 year 78.5 87.2
1 - 5 years 344.3 325.8
Over 5 years 1 061.4 1 082.6
  1 484.2 1 495.6
Future finance charges -703.2 -712.8
Present Value of Finance Lease Liabilities 781.0 782.8
     
Representing the Value of Finance Lease Liabilities    
Less than 1 year 75.0 83.3
1 - 5 years 265.6 243.7
Over 5 years 440.4 455.8
  781.0 782.8