We combine financial strength with industrial competence

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

RETURNS

Secure competitive total return to shareholders, year on year

BALANCE SHEET

Maintain a solid balance sheet protecting the company from adverse portfolio changes and market effects

CASH

Keep a solid liquidity buffer to have the financial flexibility to

  • seize opportunities
  • get through downwards cycles
DIVIDENDS

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
AKER’S CREDIT FRAMEWORK

Interest bearing items

Aker ASA and Holding companies held net interest-bearing debt of about NOK 7.5 billion as per 30 September 2020.
Main interest-bearing receivables
9/30/2020
Estremar Invest AS (Former Ocean Harvest AS)
345
Various others
549
Total main interest-bearing receivables
894

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
(years)

Coupon

Loan amount
(MNOK)

Outstanding Amount1)
(MNOK)

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)

Financial Covenants
Maturity profile
Loan guarantees
Net LTV

Credit analysts

The below table provides an overview of the fixed income analysts who cover Aker ASA.

COMPANYANALYSTTELEPHONEE-MAIL

Arctic Securities

Anna-Karin Hempel+47 21 01 32 76anna-karin.hempel@arcticsec.no
Danske BankMark 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 64Espen.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:

Aker ASA 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