Borrowing profile

Statkraft AS’ interesting-bearing debt amounted to NOK 37.3 billion as at 30 June 2008.

Around 60% of the debt has been raised in the Norwegian market and is listed on the Oslo Stock Exchange. The remaining debt has been raised in the international marked and is largely listed on European stock exchanges.

Statkraft’s primary sources of funding are bond issues in the domestic market and in the Euro-market. In June 2006 Statkraft established an EMTN Programme with standard documentation for all funding. The programme is registered on the London Stock Exchange. New bonds are listed in London or in Oslo.

On 1 October 2004 the state-owned enterprise Statkraft SF transferred its business activities to a new limited company Statkraft AS. After this reorganisation Statkraft AS became the parent company and the financial vehicle of the group. Statkraft AS remains wholly owned by Statkraft SF which again is wholly owned by the Ministry of Trade and Industry.

All debt issued prior to 1 January 2003 is guaranteed by the Norwegian State. Statkraft SF remains the issuer of the state-guaranteed debt and has loan agreements back-to-back with Statkraft AS. Statkraft AS is the issuer of debt raised as of 1 January 2003.

As at 31 December 2007 the state-guaranteed debt amounted to NOK 11.4 billion, while loans not guaranteed by the State totalled NOK 25.9 billion.

Financing policy
Statkraft AS will be the issuer of any new bonds. As a group, Statkraft AS aims to have a liquidity reserve which is large enough to keep the business in operation for more than six months without the need for new borrowing. The group has two 5 year syndicated revolving facilities of NOK 5 billion maturing in 2012 and NOK 3 billion maturing in 2013 respectively.

The tenor of any new bond issued shall meet the need for long-term financing and ensure that debt maturity is spread over a reasonable period of time.

With the debt placed in the parent company, Statkraft AS, lenders have the security afforded by the group’s balance sheet. All lenders are treated equally through pari passu clauses and negative pledge agreements in the loan contracts. Restrictions have been imposed on the subsidiaries’ capacity to borrow in their own right.
 
Debt redemption profile by maturity date

Distribution of loans by source of financing