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
- 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