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Debt and Credit Rating

KONGSBERG uses the Norwegian corporate bond market as its primary source for debt capital and has access to liquidity through its NOK 2.3 billion revolving credit facility and a NOK 500 million overdraft facility. The parent company, Kongsberg Gruppen ASA, normally issues the external debt and funds subsidiaries within the group through loans and equity.

DEBT

All bonds are issued in Norwegian kroner and are either listed, or in the process of being listed, on Oslo Stock Exchange. KONGSBERG has set a target for net interest-bearing debt/EBITDA (pre IFRS 16 effects) over time to be within the range 1.0x +/- 1.0x, and around the centre of the range as a long-term average.

ISIN Code Amount(NOK million) Rate Start Date Maturity Date Listing Related documents
NO0010766512 1,000 3.20% 02.06.2016 02.06.2026 Oslo Stock Exchange KOG09 Securities note with bond agreementRegistration document
NO0010779788 450 2.90% 05.12.2016 05.12.2023 Oslo Stock Exchange KOG11 Securities note with bond agreementRegistration document
NO0010837586 500 3M NIBOR + 0.88% 06.12.2018 06.12.2021 Oslo Stock Exchange KOG12 Prospectus
NO0010837602 500 3M NIBOR + 1.20% 06.12.2018 06.06.2024 Oslo Stock Exchange KOG13 Prospectus
NO0010940422 500 3M NIBOR + 0.86% 26.02.2021 26.02.2026 Oslo Stock Exchange KOG14 Bond Agreement Base Prospectus / Final terms

 

CREDIT RATING

The working capital requirement in KONGSBERG can fluctuate considerably, which requires good liquidity and predictable access to capital. The Group shall therefore have good creditworthiness by investors and customers, which will help ensure secure access to debt capital markets.

 KONGSBERG holds a credit rating from Nordic Credit Rating (“NCR”). The full rating along with rating definitions are available at www.nordiccreditrating.com.

Rating Agency Date of rating Long-term issuer credit rating Outlook
Nordic Credit Rating 07.04.2021 A- Stable

  

REVOLVING CREDIT FACILITY

KONGSBERG has a syndicated revolving credit facility of NOK 2.3 billion with Danske Bank A/S, DNB Bank ASA, J.P. Morgan Ltd., Nordea Bank AB and Skandinaviska Enskilda Banken AB. The credit facility is for general corporate purposes and matures on 15 March 2023. The credit facility requires that net interest-bearing debt does not exceed 4 times EBITDA, but can be up to 4.5 times EBITDA for a maximum of four quarters, of which three quarters may be consecutive

DEBT MATURITY PROFILE

The below graph shows the ending balance (EB) and maturity profile for bonds outstanding as of 30 June 2021 in million NOK.

graf dept finance 13. july.bmp