Financing

Already at the time of the IPO (Initial Public Offering), Castellum established that the company should stand for low financial risk – which is currently expressed in terms of a loan-to-value ratio which shall not permanently exceed 40% and maintaining an interest coverage ratio of at least 300%.

Castellum’s financing strategy will support operations and manage the Group’s financial risks while promoting an open and transparent climate. Castellum’s financing strategy can be summarized in five cornerstones:

Diversification

Castellum shall aim for a diversified loan portfolio and avoid dependence on any specific counterparty or source of financing. Furthermore the financing’s maturity profile shall be well distributed over time.

Liquidity

Castellum shall have available unutilized credit facilities in order to respond rapidly to business needs and opportunities that arise.

Strength

The Group’s financial key ratios shall be strong, with a loan-to-value ratio not exceeding 40% and an interest coverage ratio of at least 300%.

Transparency

Castellum encourage long-term relationships with both banks and other lenders/investors and aim to be transparent in order to increase stakeholders understanding of the Group’s operations and, consequently, credit exposure.

Flexibility

Castellum shall have flexible financing for the purpose of supporting business developments regarding acquisitions, sales and project development. Our credit facilities shall provide us with high flexibility to utilize and repay with short notice without additional cost. Furthermore, Castellum’s financing shall be flexible, both in terms of pricing (fixed and floating) and maturities.

Castellum’s financial policy and commitments in credit agreements

Policy Commitment Outcome
Loan to value ratio Not exceeding 40% Not exceeding 65% 47%
Interest coverage ratio At least 3.0x At least 1.5x 4.1x
The share of secured borrowing/total assets Not exceeding 45% 15%
Funding risk
– average debt maturity At least 2 years 3.2 years
– proportion maturing within 1 year No more than 30% of loans outstanding and unutilised credit agreements 8%
– liquidity reserve Liquidity reserve corresponding to 12 months upcoming loan maturities Achieved
Interest rate risk
– average interest duration 1.5-4.5 years 2.6 years
– maturing within 6 months No more than 50% 31%
Credit and counterparty risk
– rating restrictions Credit institutions with high ratings, at least S&P BBB+ Achieved
Currency risk
– net exposure in foreign currency Maximum of 10% of the balance sheet total Achieved