Funding sources

Orkla’s main funding sources are bilateral loans from Orkla’s relationship banks and loans in the Norwegian bond market. The group Treasury also continuously evaluates other funding sources. External borrowing is centralised at the parent company level, and capital needs in subsidiaries are mainly covered by internal loans, or equity. The capital structure in subsidiaries is adapted to commercial, as well as legal and tax considerations. The short-term liquidity needs of group companies is managed at group level through cash pools.

An overview of the group’s funding as of 31 December 2022 is shown below.

Covenants

Orkla has no loan agreements with financial covenants for the group or for Orkla ASA. The loan agreements include some limitations on disposals of businesses, creation of security interest on assets, borrowing at subsidiary level, and cross default clauses. As of 31 December 2022, debt secured by pledges amounted to NOK 227 million, whereas the book value of pledged assets was NOK 508 million. The group’s total guarantee commitments amounted to NOK 192 million. Bonds issued in the Norwegian bond market are listed on the Oslo Stock Exchange.