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Debt structure and maturity profile

Construction stage financing

RESIDENTIAL CONSTRUCTION STAGE FINANCING TO MEET MARKET PRACTICE 

In self-developed residential production to consumers (RS Production)

  • Previously YIT has sold the contract receivables from housing corporations fo financial institutions.

»This model differs from market practice and doesn’t offer similar benefits than before.

Previously used financing model:
  • YIT’s subsidiary YIT Construction sells the contract receivables from Housing corporations (also owned by YIT) to financial institutions
    • Due upon completion
    • Sold in line with the progress of the project
 
Current model since Q4 2017:
  • Housing company debt drawn to finance the construction stage
  • Housing corporation loan related to unsold apartments is booked in interest bearing liabilities

Benefits

  • Housing company loans of sold apartments are not burdening YIT’s balance sheet
  • Similar reporting treatment as with POC debt

 » Impacting the total amount of net debt  

 

 
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