Norwegian Property ASA has available NOK 12 billion in senior debt committed from four leading Nordic banks. So far approximately NOK 6 billion has been utilized in connection with property acquisitions.

 

The company has now secured the long term interest rate for NOK 7.6 billion, at 4.28 percent p.a. with an average duration of 6.3 years. This is a lower interest-rate level than what was expected during the presentation of the business case towards investors in May 2006.

 

Norwegian Property will take a conservative approach to interest rate hedging. The normalised level of interest rate protection in the long term will be 70 to 100 percent of long-term debt. The main part of the hedging will be done in accordance with the demands following IAS 39. The company is of the opinion that this will best reflect the running financing costs and the results from the business.