Debt financing
Veidekke has historically financed its operations through a diverse range of sources, including bank loans, bonds, and certificates. Currently, the company's loan portfolio is solely linked to the bank market, with a flexible maturity structure.
In mid-February 2025, Veidekke refinanced its banking facilities. The new agreements include a NOK 2 billion overdraft facility with DNB, featuring a rolling 364-day term, and a NOK 1 billion credit facility with Nordea, with a three-year term and two subsequent one-year extension options.
The company has no outstanding certificate or bond loans.
This strategic approach to financing demonstrates Veidekke's proactive management of its debt portfolio and its efforts to ensure optimal liquidity and flexibility for its ongoing operations.
Financing strategy
Financial robustness is a top priority for Veidekke. We employ a combination of debt and equity financing. Long-term capital requirements are met through equity and long-term borrowing, preferably through the bank market.
Our short-term financing requirements fluctuate considerably due to extensive project activities, demanding generous credit facilities to cover interim capital needs.
Credit ratings
Veidekke has no official credit rating but monitors quantitative and qualitative factors that affect the group’s creditworthiness. We aim for net interest-bearing debt over EBITDA for the preceding 12 months to not exceed 3.0. As of 31 December 2024, the group had a positive net interest-bearing position of NOK 2.6 billion, rendering this ratio not applicable.
Sustainability-linked financing framework
Veidekke has established a sustainability-linked financing framework, with terms linked to the group’s greenhouse gas emissions and injuries reduction targets. A Second Party Opinion provided by Moody's has rated the framework as "Excellent".
The terms include three key indicators; lost-time injuries among own employees (LTI rate), and greenhouse gas emissions in, respectively, scopes 1 and 2, and scope 3.
- Reducing work-related injuries: Veidekke works hard towards a zero injury vision, and takes a broad approach to addressing related attitudes, competence and cultural aspects. The indicator used to link these OHS initiatives to the sustainability-linked framework is the LTI rate, i.e. the number of injuries resulting in lost time per one million hours worked.
- Greenhouse gas emissions: Veidekke has committed to achieving net zero emissions by 2045, with an interim target of cutting emissions from Veidekke’s operations by 50.4% for both direct emissions (scopes 1 and 2) and indirect value chain emissions (scope 3) by 2030. The group has also set a target of reducing land-use change (FLAG) emissions by 30.3% by 2030 and 72% by 2045. The emissions targets were updated in 2024 and validated by the Science Based Targets initiative (SBTi) in the same year.