Credit facilities and bonds
Financing for Veidekke’s operations is obtained from banking, bond and certificate markets. The loan portfolio is differentiated regarding both sources and maturity structures.
Following completion of the divestment of Veidekke Property Development in autumn 2020, we entered into agreements in December 2020 to refinance our bank loans to suit to the needs of a streamlined construction business. The new agreements provide for a borrowing facility with DNB totalling NOK 1.75 billion (with a rolling 364-day maturity) and a credit facility from SEB totalling NOK 0.75 billion with a three-year maturity and two subsequent one-year extension options. These facilities remained unutilised as at year-end 2021.
In Q1 2022, we implemented a voluntary buy-back of Veidekke’s VEI10 bond loan, which has a maturity date of 19 March 2025. The loan originally had an outstanding volume of NOK 600 million, of which a total of NOK 407 million was bought back at a price of NOK 103.20, with a payment date of 20 January 2022. Following the buy-back offer, Veidekke’s bond loan stands at NOK 193 million.
The group had no outstanding certificate loans at year-end 2021.
Norwegian bond loans
|Securities document/loan description
|ISIN NO 0010819261
Click on the links in the table below to download loan agreements, registration document/prospectus, and securities document/loan description (pdf).
Financial robustness is a top priority for Veidekke. We employ a combination of debt and equity financing. Long-term capital requirements are met through long-term borrowing, preferably through the bond markets.
Our short-term financing requirements fluctuate considerably due to extensive project activities, demanding generous credit facilities to cover interim capital needs.
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 at 31 December 2021, the group’s net interest-bearing position amounted to NOK x,x billion, rendering this ratio not applicable.