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.
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 agreement / Registration document|
|NO0010779788||450||2.90%||05.12.2016||05.12.2023||Oslo Stock Exchange||KOG11||Securities note with bond agreement / Registration 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|
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.
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.