Funding sources

Orkla’s main funding sources are bilateral loans from Orkla’s relationship banks and loans in the Norwegian bond market. Orkla ASA Group Treasury also continuously evaluates other funding sources. External borrowing is mainly centralised at Orkla ASA, and capital needs in fully owned subsidiaries are normally covered by internal loans from Orkla ASA, or equity. The capital structure of portfolio companies and their subsidiaries is adapted to commercial, as well as legal and tax considerations. The short-term liquidity needs of the companies is managed at group level through cash pools.
An overview of the group’s funding as of 31 December 2023 is shown below.

An overview of the group’s funding as of 31 December 2023 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 2023, debt secured by pledges amounted to NOK 198 million, whereas the book value of pledged assets was NOK 557 million. The group’s total guarantee commitments amounted to NOK 167 million. Bonds issued in the Norwegian bond market are listed on the Oslo Stock Exchange.