Capital management

The group’s central finance function is responsible for arranging the group’s financing, using the banking, bond and certificate markets as sources. Veidekke’s loan portfolio is differentiated in terms of both lenders and maturity structures.

Veidekke is now a streamlined construction operation, reducing the group’s capital requirements compared to before the sale of the property development operation. Veidekke refinanced its bank loans in December 2020.

The new agreements provide for a borrowing facility with DNB totalling NOK 1.75 billion (with a rolling 364-day maturity) and a credit facility from SEB totalling NOK 0.75 billion with a three-year maturity and two subsequent one-year extension options.

These facilities remained unutilised as at the end of 2020. Veidekke also has a NOK 600 million fixed-rate senior unsecured bond loan which matures in 2025. The group had no outstanding certificate loans as at 31 December 2020. Veidekke has no official credit rating but monitors quantitative and qualitative factors with an effect on its creditworthiness.

The group’s aim is to keep net interest-bearing debt over EBITDA for the preceding 12 months below 3.0. As at 30 September 2020, this ratio was 0.