Debt

Primary objective

The primary objective of Orkla’s financial policy is to ensure that the Group has sufficient financial flexibility in the short and long term to achieve its strategic and operational objectives.

Funding policy

Orkla’s policy for the funding activity is to maintain unutilised, long-term, committed credit facilities which together with liquid deposits are sufficient to cover loans that fall due and known capital needs over the next 12 months, as well as a strategic reserve. This means that Orkla’s credit facilities are normally refinanced one year before maturity and that short-term interest-bearing debt is at all times covered by unutilised long-term credit facilities. Commercial paper and money markets are used as a source of liquidity when conditions in these markets are competitive as an alternative to drawing on unutilised committed long-term credit facilities.

Liquidity reserves

Orkla’s liquidity reserve, beyond cash and cash equivalents, primarily consists of unutilised, long-term, credit lines under bilateral bank facilities.

Interest term

As of 31.12.2017, 62% of Orkla’s interest bearing debt had an interest term exceeding one year.

An overview of Orkla’s net interest bearing debt and debt maturity profile as of 31.12.17 is shown below.

 

Funding sources

Net interest bearing debt

(NOK 14 million as of 31.12.2017)
Amounts in NOK billion.

Debt maturity profile

(as of 31.12.2017)
Amounts in NOK million
Average maturity 4.3 years

Contacts

Thomas Ljungqvist

SVP Investor Relations, Orkla ASA

Thomas.Ljungqvist@orkla.no

+47 48 25 96 18

Geir Solli

Senior Vice President Group Treasury

geir.solli@orkla.no

+47 995 42 789