Veidekke ASA has signed a new loan agreement with DNB Bank ASA today. The agreement includes a credit facility of NOK 3.1 billion, due 2 November 2015. The new agreement replaces a similar agreement from 2005, but the frame has now been increased by NOK 1 billion.
Veidekke expects growth in both construction and property development going forward and therefore wants to have high financial flexibility. The agreement with DNB, including the increase in the credit limit, provides a good basis for realizing this growth strategy.
Veidekke has signed a Nibor-based loan agreement with an agreed loan margin. The loan margin will be renegotiated annually, the first time in November 2012. NOK 0.8 billion has currently been drawn on the credit limit, bringing Veidekke's available credit facility to NOK 2.3 billion. Veidekke is free to issue commercial papers during the loan period, and may thus use the credit limit as a back-stop facility.
Contact persons:
CFO: Jørgen W. Porsmyr; +47 907 59 058
Finance Director: Jørgen G. Michelet; +47 917 43 856
Assistant Finance Director: Christopher M. Bjerke; +47 995 81 802
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.