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.
Orkla’s policy with regard to its funding activity is to maintain unutilised, long-term, committed credit facilities which together with available 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 committed long-term credit facilities.
Orkla’s liquidity reserve, beyond cash and cash equivalents, primarily consists of unutilised, long-term, credit lines under bilateral bank facilities.
As of 31.12.2019, 51% of Orkla’s interest bearing debt had an interest term exceeding one year.
(NOK 4 895 million as of 31.12.2019)
Amounts in NOK billion.
(as of 31.12.2019)
Amounts in NOK million
Average maturity 3.7 years