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Debt

Aker's bond financing constitutes the majority of the company’s total debt financing. All bonds are senior unsecured.

Total debt in Aker ASA and Holding companies as of 31 December 2018 are as follows (the bond loan agreements are attached to the links below):

Ticker

Issue

Loan term
(years)

Coupon

Loan amount (MNOK)

Outstanding Amount1) (MNOK)

Bonds

 

 

 

 

 

AKER09

07.09.2012

10

N3M+500

1 000

1 000

AKER10

06.06.2013

7

N3M+400

700

700

AKER12 2)

24.01.2014

5.5

Stibor3M+325

1 455

1 455

AKER 13

29.05.2015

5

N3M+350

1 000

1 000

AKER 14

31.01.2018

5

N3M+265

2 000

2 000

Total Bonds Aker ASA

 

 

6 155

6 155

Bank loan (RCF) 4)

22.02.2016

5-7

 

1 500

-

Capitalised loan fees

 

 

(22)

(22)

Total debt Aker ASA

 

 

7 633

6 133

Bank loan Aker Capital 1 3)

26.09.2016

5-6

 

3 910

2 172

Bank loan Aker Capital 2 5)

22.11.2017

1-3

 

869

869

Capitalised loan fees

   

(14)

(14)

Total debt Aker Capital

 

4 765

3 027

Total debt Aker ASA and holding companies

 

12 398

9 160

1) Loan amount drawn, less own bonds
2) MSEK 1 500 issue
3) MUSD 450 term loan of which MUSD 250 was drawn at December 31, 2018 (maturity in 2021 with one-year uncommitted extension option),   
   redrawable up to the original amount
4) Revolving credit facility (RCF) of MNOK 1 500 (maturity in 2021 with a two times one-year uncommitted extension option)
5) MUSD 100 3 years Master Term Loan Agreement (SMTLA) with drawdowns rolling forward up to 12 months

As per 31 December 2018, Aker met all of its loan covenants with considerable margin.

 

Financial Covenants

Limit

Status per 31.12.2018

i

Total debt/equity*       

< 80%

44%

ii

Group loans to NAV
or Group loans

< 50%
< NOK 10 bn

1.7%
NOK 0.7 bn

* Covenant applies to Aker ASA figures (parent only). Reference is made to loan agreements for details.

As of 31 December 2018, the average maturity profile of the debt portfolio was 2.5 years. The chart below shows the maturity profile of Aker’s nominal values/outstanding loans.

4q18 - Maturity profile

Loan guarantees

2016

2017

1Q18

2Q18

3Q18

4Q19

Aker BioMarine*

305

305

305

305

305

305

Ocean Harvest

59

46

41

41

39

38

Other

3

3

3

3

3

3

Total external

367

354

349

349

346

346

* The guarantee expires upon Aker BioMarine reaching a net interest bearing debt to EBITDA ratio inferior to 3.5x for two consecutive quarters.

Financial guidelines

  • Financial metrics at investment grade level:
    • Net LTV within investment grade
    • Balancing cash inflow and outflow at Aker ASA and holding companies
    • Solid liquidity reserves to cover debt
  • Parameters may fluctuate over time, but remains long term target over business cycles

General priciples

  • Long-term funding profile
  • Financial flexibility to optimise timing of refinancing activities
  • Open dialogue with bond and bank market
  • Subsidiaries financed independently