Financing overview

Funding sources

The Group uses several sources of long-term loan capital, whereof banks and bond markets are the most important. External borrowing is centralised at the parent company level, and capital needs in subsidiaries are mainly covered by internal loans, or equity. The capital structure in subsidiaries is adapted to commercial, as well as legal and tax considerations. The short-term liquidity of Group companies is managed at Group level through cash pools.

Orkla’s main funding sources are bilateral loans from Orkla’s relationship banks and loans in the Norwegian bond market. Funds raised in the US Private Placement market were repaid during 2017. The Group Treasury also continuously evaluates other funding sources. The term to maturity for new loans and credit facilities is normally 5–10 years.

An overview of the Group’s funding as of 31.12.18 is shown below.

Mill. kroner Bokført verdi 31.12.18 Valuta Pålydende i valuta Nominell rente Termin Notert
Obligasjonslån
ORK80 (ISIN NO 001 069468.0)                    941 NOK        1 000 Fast 4,35% 2013/2024 Oslo Børs
ORK82 (ISIN NO 001 173173.0)                    722 NOK        1 500 Nibor + 0,69% 2015/2022 Oslo Børs
ORK83 (ISIN NO 001 177438.3)                    675 NOK        1 000 Nibor + 0,85% 2016/2023 Oslo Børs
ORK84 (ISIN NO 001 177439.1)                    260 NOK        1 000 Fast 2,35% 2016/2026 Oslo Børs
Øvrige private plasseringer                       60
Sum obligasjonslån                 2 658
Banklån                 2 355
Andre lån                    217
Sum rentebærende gjeld                 5 230
Rentebærende fordringer                 2 192
Netto rentebærende gjeld                 3 037
Ubenyttede langsiktige lånerammer                 3 567

Covenants

Orkla has no loan agreements with financial covenants for the Group or for Orkla ASA. The loan agreements include some limitations on disposals of businesses, creation of security interest on assets , borrowing at subsidiary level, and cross default clauses. As of 31.12.18, debt secured by pledges amounted to NOK 57 million, whereas the book value of pledged assets was NOK 152 million. The Group’s total guarantee commitments amounted to NOK 176 million. Bonds issued in the Norwegian bond market are listed on the Oslo Stock Exchange.

Credit rating

Orkla has no official credit rating, but actively monitors quantitative and qualitative measures which affect the creditworthiness of the Group.