2/2012 - Fingrid

MONEY ISA SCARCE COMMODITYFollowing several months of intense and thorough preparations, Fingrid issued a public bond of300 million euros at the beginning of April this year. Fingrid’s Treasury Manager Katrina Klinge-Sonninen played a key role in the arrangement which consolidates the funding base of thecompany’s capital investment programme of 1.7 billion euros.Text by Maria Hallila | Photographs by Juhani Eskelinen and Heidi Sonninenuncertainty shadowing theglobal economy and financialmarkets has influenced “Thecorporate funding activities. ‘Cash isking and money talks’, but now, if ever,you can say that money is a scarcecommodity,” Katrina Klinge-Sonninensays.“Only change remains constant”Katrina Klinge-Sonninen says that turbulenttimes are testing the strength andreliability of companies’ debt financingbase. “Fingrid’s financial policy isfounded on a long-term approach. Weassume that only change remains constant.”Fingrid’s principles of financing areapproved by the Board of Directors, andthe financial exposure and financialrisks of the company are reported regularlyto the Board.“The risks and their limits are set atFingrid so that they are not changedfrequently. Within the framework ofrisks, it must be possible to executefinancing in a sustainable manner; financingmust not cause fluctuation inthe company’s financial performance orcompromise liquidity and financial position.”According to Katrina Klinge-Sonninen,the recent market volatility hasproved clearly that Fingrid’s financingprinciples are sustainable. It has notbeen necessary to change the principleseven during great instability.Katrina Klinge-Sonninen considers it meaningful to have close co-operationwith the company’s Board of Directors in financial solutions. The principles offinancing adopted by the Board guide the efforts, and the Board also receivesregular reports of the financing situation.Money at the right priceFingrid’s capital structure is heavilydebt-based. The company has an in-FINGRID 2/2012 | 16