Norway Post wants to be able to borrow in many different markets. Spreading loans in this way gives the Group greater flexibility while also providing better terms and better repayment timeframes.
Equity
As at 30.06.10 Norway Post's equity was MNOK 5,819.
Certificate loans
Norway Post is active in the Swedish and the Norwegian certificate markets (the market for short-term security loans). It is important to maintain a certain level of activity in both security markets to ensure that the investors that loan Norway Post money are familiar with the Group. Individual investors must carry out their own independent evaluations of Norway Post's solidity and activity. So familiarity with Norway Post in the market helps to ensure better loan conditions.
Interest rate level
The effective interest rate on Norway Post’s floating interest rate loan was 4.12% as at 31.12.2009. As at 31.12.2009, fixed interest rate agreements had been entered into for MNOK 1,298 at an average interest rate of 4.6%, valid until 2011-2020. Debt to credit institutions includes a certificate loan of MSEK 200 which is within the framework of established overdraft facilities and is thus classified as long-term financing. Liabilities linked to financial leases are reduced by regular payments of loan instalments. The weighted average effective interest rate on these loans was 5.7% for Norway Post and 4.8% for the Group as at 31.12.2009.
Interest rate policy
Historically it has been favourable for Norway Post to finance operations primarily using floating interest rates in Norway. However Norway Post wishes to avoid major fluctuations in the total interest it pays on outstanding loans. In certain periods it will therefore be favourable to undertake fixed interest rate transactions when the interest rate is low for long interest rate periods.
Interest-bearing loans
Norway Post had four private placement loans totalling MNOK 1,063 as at 31.12.2009 of which the most recent loan was taken out in September 2008. Norway Post did not enter into any new loan agreements in 2009. In 2008 Norway Post entered into loan agreements with terms from 3 to 12 years, of which MNOK 1,497 was in the Norwegian bond market, MNOK 750 was in the Nordic Investment Bank (NIB) and MNOK 148 was in the Japanese private placement market.
| Sources of capital as at 30.06.2010 | Loan amount | Maturity |
|---|---|---|
| Bonds | 1500 | 11.3.2011 |
| Private Placement (Japan) | 185 | 29.6.2011 |
| Nordic Investment Bank (NIB) | 400 | 24.8.2011 |
| Private Placement (Japan) | 400 | 7.8.2013 |
| Drawing right HB (MNOK 500) | 0 | 18.9.2013 |
| Private Placement (Japan) | 330 | 27.5.2016 |
| Nordic Investment Bank (NIB) | 750 | 29.9.2018 |
| Private Placement (Japan) | 148 | 18.9.2020 |
| Certificate loan | 0 | |
| Drawing rights Syndicate loan (MNOK 4,000) | 0 | |
| Total Sources of capital | 3 881 |