Financing

Norwegian Property has established as part of its finance policy that the LTV level should be between 45-55%.

The company’s goal is to reduce refinancing risk through a diversified maturity profile.

Funding sources are split between bank loans, bilateral loans and listed bonds. As real estate is a capital-intensive business, it is essential for the company to maintain good relations with several large banks, active and stable in the Norwegian market.

The bond market has been the most important funding source to Norwegian Property for several years, and three new loans were issued in June 2024, amounting to NOK 1 395 million.

By the end of Q2-2024 the split was 26% bank loans, 40% bilateral loans, and 34% listed bonds. Of all outstanding loans approximately 10% are green bonds.

Scope assigned Norwegian Property ASA first-time issuer rating of BBB- with Stable Outlook based on Q1-2022 figures. Scope updated the rating on 3rd May 2024 to BBB- with negative outlook. Scope published its BBB rating of three new bonds in July 2024.

NPRO published its updated Green Bond Framework with the updated second opinion from S&P Global in September 2024, and the company’s latest Green Bond report is available from the sustainability web page.