JOTUN GROUP
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16 Funding and borrowings
The Group’s policy is to have long-term loan’s and committed credit facilities to cover planned financing needs with an additional
strategic reserve of five per cent of annual consolidated sales. As of 31 December 2018, there were no drawings on the committed credit
facilities.
Jotun Group’s main sources of financing are loans in the Norwegian Bond market and bilateral bank facilities. Certificate loans are also
used as a source of liquidity. The time to maturity for new loans and credit facilities is normally 3–7 years.
In 2018, the Jotun Group increased bond funding from NOK 1 000 million to NOK 1 555 million. The loan from Nordic Investment Bank
(NIB) of USD 120 million is maintained and semi-annual instalments began in 2018. The table below gives an overview of total and net
interest-bearing debt.
(NOK THOUSAND) Book value Book value Currency Coupon Term
31.12.2018 31.12.2017
Non-current interest-bearing debt
Bonds
Bond 2014–19 – 600 000 NOK
Bond 2014–21 400 000 400 000 NOK Fixed rate 3.8 % 2021
Bond 2018–22 500 000 – NOK NIBOR + 0.7 % 2022
Bond 2018–24 500 000 – NOK NIBOR + 0.9 % 2024
Bank debt (NIB), unsecured 723 274 835 204 USD US LIBOR + 1.2 % 2024
Bank debt Egypt 77 645 – EGP EGP + 1.7 % 2023
Bank debt Brazil, BNDES secured with bank guarantee 14 349 29 979 BRL TJLP + 1.8 % 2021
Other bank debt 37 501 179 108
Total 2 252 768 2 044 291
Current interest-bearing debt
Certificate loans, unsecured – 100 000 NOK
Bond 2014–19 155 000 – NOK NIBOR + 0.9 % 2019
Bank debt (NIB), unsecured 160 728 151 855 USD US LIBOR + 1.2 % 2019
Credit line facilities 24 438 22 932
Bank loans, maturity <1 year 31 543 156 980
Bank debt China 262 558 325 308
Bank debt Turkey 231 444 202 838
Bank debt Thailand 201 225 –
Bank debt Oman, pledge in tangible assets 109 411 103 499
Bank debt Russia 74 846 –
Other loans 128 208 45 761
Total 1 379 401 1 109 173
Total interest-bearing debt 3 632 169 3 153 464
Non-current interest-bearing receivables 94 242 97 313
Cash and cash equivalents 1 011 564 1 027 165
Net interest-bearing debt 2 526 364 2 028 985
Change in loan balance
(NOK THOUSAND) Non-cash changes
Other (incl. Foreign
2018 Cash reclass.) exchange 2017
Long-term borrowings 2 252 768 –598 111 424 271 –34 636 2 044 291
Short-term borrowings 1 379 401 109 933 –424 271 44 110 1 109 173