Interest rate risk

Interest rate risk represents how changes in market interest rates affect cash flow and the Group’s earnings, as well as the value of financial instruments.


The management of the Group’s interest exposure is centralized, meaning that the central finance function is responsible for identifying and managing this exposure in accordance with the finance policy adopted by the Board of Directors. Inwido strives to achieve a good spread of interest rate maturity to avoid large loan volumes being subject to interest rate renegotiation at the same time. Inwido’s short-term interest rate exposure (aggregated positions with a remaining weighted average length <1 year) shall be between 50 and 80 percent of the total debt portfolio excluding short-term seasonal debt. The average period of fixed interest on the Group’s gross borrowing, including the effects of interest rate derivatives, may not exceed three years.