Norsk Hydro Places US$725 Million in New Bonds

Norwegian aluminium smelter Norsk Hydro A.S.A. announced yesterday the successful placement of approximately US$725 million in senior unsecured bond issues.

According to the company, the bond issue is divided into five parts:

  • SEK1 billion (US$119 million) in two-year fixed-rate notes with a coupon of 0.125% per annum and a reoffer yield of 0.18%,
  • SEK1 billion (US$119 million) in three-year floating-rate notes with a coupon of three-month Stockholm Interbank Offered Rate (Stibor) plus 0.75% per annum and a reoffer spread of three-month Stibor plus 0.52% per annum,
  • SEK1 billion (US$119 million) in five-year fixed-rate notes with a coupon of 1.00% per annum and a reoffer yield of 1.115%,
  • NOK1 billion (US$122 million) in five-year floating-rate notes with a coupon of three-month Norwegian Interbank Offered Rate (Nibor) plus 0.75% per annum and a reoffer spread of three-month Nibor plus 0.75% per annum,
  • NOK1 billion (US$122 million) in seven-year fixed-rate notes with a coupon of 2.5% per annum and a reoffer yield of 2.548%.

Hydro CFO Eivind Kallevik expressed pleasure at the successful bond placement, noting the strong interest in the issue.

“We are very pleased with the process and to have completed such a successful placement of bonds. Interest from investors has been strong and we believe we have accomplished highly competitive terms.”

Norsk Hydro, which was founded in 1905, financed by the Swedish Wallenberg family and French banks, began its life named Norsk hydro-elektrisk Kvælstofaktieselskab (literally, “Norwegian hydro-electric nitrogen limited”) by Sam Eyde. The Norwegian government owns approximately 40% of the company at the present time. Norsk Hydro is one of the largest aluminium companies in the world, with plants in Rjukan, Raufoss, Vennesla, Karmøy, Høyanger, Årdal, Sunndalsøra, and Holmestrand. Norsk also has several plants abroad, including in Germany and Brazil.



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