TVO's financial situation has developed as planned.
TVO's liabilities (non-current and current) at the end of the year, excluding the loan from the Finnish State Nuclear Waste Management Fund relent to shareholders, totaled EUR 4,749.8 (December 31, 2017: 4,412.0) million, of which EUR 679.3 (579.3) million were subordinated shareholder loans. During 2018, TVO raised a total of EUR 894.3 (200.0) million in non-current liabilities, of which EUR 100.0 (100.0) million were subordinated shareholder loans. Repayments during the year amounted to EUR 717.9 (258.9) million.
In April TVO issued a EUR 400.0 million bond. The maturity of the bond is six years and the coupon 2 %. EUR 306.5 million of the proceeds from the bond were used for a partial repurchase of the EUR 500.0 million bond maturing in February 2019.
In September TVO raised EUR 100.0 million of subordinated shareholder loans. Thereafter, shareholder loan commitments worth EUR 250.0 million are still undrawn.
In November TVO issued a SEK 2,350 million bond equivalent to EUR 229 million. There are two maturities in the bond. 3.25 years for SEK 1,000 million and 5.25 years for SEK 1,350 million.
In December, the company made a bilateral loan of EUR 65 million with Nordic Investment Bank (NIB). Maturity of the loan is ten years. In addition, TVO made a bilateral loan agreement of EUR 100 million for three years in December.
In February, Japan Credit Rating Agency (JCR) downgraded TVO's long term rating from AA- to A+ and assessed the outlook as stable. Standard & Poor’s (S&P) had set TVO’s long term rating (BB+) under CreditWatch Negative in October 2017. However, in March 2018, S&P removed TVO's rating from CreditWatch Negative and assessed TVO's outlook as stable. In September 2018 Fitch Rating Agency confirmed TVO's long term rating BBB- and assessed outlook as stable. In December JCR confirmed TVO's long term rating A+ and assessed outlook as stable.
The OL3 EPR project's share of financing costs has been capitalized in the balance sheet.
TVO uses its right to borrow funds back from the Finnish State Nuclear Waste Management Fund within the framework of legal regulations. On December 31, 2018 the amount of the loan was EUR 666.2 (655.5) million and it has been relent to the Company's A-series shareholders. On March 31, 2018, the loan from the Finnish State Nuclear Waste Management Fund was increased by EUR 10.7 (March 31, 2017: decrease 371.5) million.
