Page 114 - EVRY Annual Report 2012

Annual Accounts Group 114
The group’s maximum exposure to credit risk at 31 December 2012 was NOK 2,306 million.
See also Note 14 Accounts receivable and Note 15 Other current receivables for more information on the group’s
exposure to credit risk.
3. Liquidity risk
Liquidity risk arises if the cash flows generated by the group are not sufficient to match its financial liabilities
as they fall due. The target for the group’s management of liquidity risk is to maintain a liquidity reserve that is
equivalent to at least 10% of revenue for the previous 12 months. It is group policy to operate at all times with core
long-term financing arrangements with its banks in order to make it possible to use long-term bank facilities to
finance long-term investments. The group restricts its short-term interest-bearing debt to a maximum of 30% of its
total borrowings in order to ensure that it only has a restricted requirement for regular refinancing. Financing for
corporate acquisitions is evaluated independently of these requirements.
The group monitors its liquidity daily, and produces rolling liquidity forecasts on a monthly basis in order to iden­
tify liquidity requirements in future periods.
See also Note 23 Financial instruments for more information on the group’s exposure to liquidity risk.
Financial instruments
A) Non-current interest bearing liabilities and interest rate risk
Non-current interest bearing liabilities
NOK million 2012 2011 2010
Financial lease 31.4 67.1 96.9
Multi currency revolving facility 3 502.0 3 614.2 3 395.7
Non-current interest bearing liabilities 3 533.4 3 681.3 3 492.6
On 31 March 2011, EVRY ASA entered into an agreement with four banks for a new revolving credit facility of NOK
4,500 million. The four banks are DNB, Handelsbanken, Nordea and SEB, and each bank provides an equal share of
the financing. The revolving credit facility falls due for repayment in full on 31 March 2016.
The borrowing covenant in respect of NIBD/EBITDA stipulates a maximum of 3.5 to and including 30 June 2012 and
a maximum of 3.25 for the remainder of the life of the facility.
The borrowing covenant in relation to NIBD / EBITDA is for the ratio to remain below 3.25. The group is in compli-
ance with its borrowing covenants.
Commitment fees and loan setup fees totalling NOK 33.0 million have been capitalised. Of this amount, NOK 11.4
million was recognised as financial expense as at 31. December 2012.
Interest rate swap agreements
In order to secure fixed interest rate terms, EVRY ASA has entered into interest rate swap agreements for principal
amounts of NOK 2,123 million. As a result of these agreements, the group pays fixed interest rates on 61 %of its total
borrowing portfolio. The interest rate swap agreements are structured in relation to specific borrowings in order that the
quarterly rollover dates for the swap agreements correspond with the rollover dates for the borrowings in question.
Note 23