Treasury
The Treasury department’s responsibilities include managing the liabilities side of Aker ASA’s balance sheet, particularly debt financing of Aker ASA and Holding companies, interest rate and currency hedging, and advising the operating companies on financing and capital structure. The unit also manages interest and currency risks that arise in our daily business activities. The management and monitoring of financial risk is reported regularly to Aker’s Finance Committee.
Financial objectives
Secure competitive total return to shareholders, year on year
Maintain a solid balance sheet protecting the company from adverse portfolio changes and market effects
Keep a solid liquidity buffer to have the financial flexibility to
- seize opportunities
- get through downwards cycles
Sustain annual dividend payments of 2-4 per cent of the company’s value-adjusted equity.
Debt strategy
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 principles
- Long-term funding profile
- Financial flexibility to optimise timing of refinancing activities
- Open dialogue with bond and bank market
- Subsidiaries financed independently
Interest bearing items
Aker ASA and Holding companies held net interest-bearing debt of about NOK 7.5 billion as per 30 September 2020.
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 30 September 2020 is as follows (the bond loan agreements are attached to the links below):
| Ticker | Issue | Maturity | Loan term | Coupon | Loan amount (MNOK) | Outstanding Amount1) |
|---|---|---|---|---|---|---|
| Bonds | ||||||
| AKER 09 | 07.09.2012 | 07.09.2022 | 10 | N3M+500 | 1 000 | 1 000 |
| AKER 14 | 31.01.2018 | 31.01.2023 | 5 | N3M+265 | 2 000 | 2 000 |
| AKER 15 | 22.11.2019 | 22.11.2024 | 5 | N3M+190 | 1 500 | 1 500 |
| Total Bonds Aker ASA | 4 500 | 4 500 | ||||
| Bank loan 2) | 22.02.2016 | 22.02.2023 | 7-9 | 2 000 | - | |
| Schuldschein loan 3) | 27.03.2019 | 27.03.2024 | 5 | 1 110 | 1 110 | |
| Capitalised loan fees etc. | (22) | (22) | ||||
Total debt Aker ASA | 7 588 | 5 588 | ||||
| Bank loan Aker Capital 1 4) | 26.09.2016 | 26.09.2023 | 7-8 | 4 267 | 4 267 | |
| Bank loan Aker Capital 2 5) | 25.05.2020 | 25.05.2023 | 3 | 2 000 | 1 000 | |
| Capitalised loan fees etc. | (14) | (14) | ||||
Total debt Aker Capital | 6 252 | 5 252 | ||||
Total debt Aker ASA and holding companies | 13 840 | 10 840 |
1) Loan amount drawn, less own bonds and/or repayments
2) Revolving credit facility (RCF) of MNOK 2 000 (maturity in 2023 with two one-year uncommitted extension options)
3) MEUR 100 5 years Schuldschein loan
4) MUSD 450 term loan fully drawn at 30 September 2020 (maturity in 2023 with a one-year uncommitted extension option)
5) Term Loan and RCF of MNOK 2 000 (MNOK 1 000 drawn at 30 September 2020)
Credit analysts
The below table provides an overview of the fixed income analysts who cover Aker ASA.
| COMPANY | ANALYST | TELEPHONE | |
|---|---|---|---|
Arctic Securities | Anna-Karin Hempel | +47 21 01 32 76 | anna-karin.hempel@arcticsec.no |
| Danske Bank | Mark Naur Bendik Engebretsen | +45 23 21 29 37 +47 85 40 69 14 | mnau@danskebank.com bee@danskebank.com |
| DNB Markets | Espen Korsmo Granly | +47 24 16 93 64 | Espen.granly@dnb.no |
| Nordea Markets | Kristoffer B. Pederson Øyvind Hagen | +47 24 01 50 14 +47 24 01 50 16 | kristoffer.b.pedersen@nordea.com oyvind.hagen@nordea.com |
| Pareto Securities | Thomas Eriksen | +47 24 13 21 71 | thomas.eriksen@paretoseco.com |
| SEB Enskilda | Mats Wiggo Gulbrandsen Terje Fatnes | +47 22 82 70 59 +47 21 00 85 38 | mats.guldbrandsen@seb.no terje.fatnes@seb.no |
| SpareBank 1 Markets | Jørgen Haug Lars Kristian Oddenes | +47 24 14 74 39 +47 24 14 74 43 | jorgen.haug@sb1markets.no lars.oddenes@sb1markets.no |
| Swedbank First Securities | Jonas Bito Shum | +47 23 23 82 76 | jonas.shum@swedbank.no |
Treasury contacts:
Baard Snekkevik, Corporate Treasurer
Phone: +47 24 13 00 03
Cell: +47 91 63 00 03
E-mail: baard.snekkevik@akerasa.com
Kristine Hauge, Controller Treasury
Phone: +47 24 13 00 16
Cell: +47 91 63 00 16
E-mail: kristine.hauge@akerasa.com
Treasury e-mail: treasury@akerasa.com