Financing strategy

Veidekke target to be a financially solid company, and intend to maintain the “investment grade” shadow rating. For the time being Veidekke has a BBB shadow rating from SEB. BBB- is the lowest notch within the investment grade category.

Both Property Development and the Industry segment are capital intensive. Veidekke’s funding is therefore a mix of equity and debt. The need for long term funding is usually met by issuing long term bonds. The outstanding balance of bonds is today at 750 MNOK and they are due in 2018. Veidekke has also issued a 500 MNOK commercial paper with maturity December 2017.

The need for short term funding vary a lot in a project based company like Veidekke.  In addition the company pays a substantial amount in dividends in may each year, and the asphalt business is very capital intensive during the summer. All together Veidekke needs a large short term credit facility. Today Veidekke has a credit facility of 3 600 MNOK, due in 2020.

 

Forfallsprofil Veidekke ASA

Contact us for more information

Jørgen Michelet

Senior Vice President Finance

T: +47 21 05 50 00 M: +47 917 43 856

jorgen.michelet@veidekke.no