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 55% and maintaining an interest coverage ratio of at least 200%.

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 55% and an interest coverage ratio of at least 200%.

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 Committment Outcome Q3 2017
Loan to value ratio Not in the long run exceeding 55% No more than 65% 49%
Interest coverage ratio At least 200% At least 150% 396%
Funding risk
– average capital tied up At least 2 years 2.9 years
– proportion maturing within 1 year No more than 30% of outstanding loans and unutilized credit agreements  7%
– average maturing credit price At least 1.5 years  2,4 years
– propotion capital market financing No more than 75% of outstanding interest bearing liabilities 57%
– liquidity reserve Secured credit agreements corresponding to SEKm 750 and 4.5 months upcoming loan maturities Fulfilled
Interest rate risk
– average interest duration 1.0-3.5 years 2.5 years
– proportion maturing within 6 months At least 20%, no more than 55% 38%
Credit and counterparty risk
– rating restrictions Credit institutions with high ratings, at least S&P BBB+ Fulfilled
Currency risk
– translation exposure Shareholders equity is not secured Not secured
– transaction exposure Handled if exceeding SEKm 25 Under SEKm 25

More information per december 31, 2016

Danielsson, Ulrika

Danielsson, Ulrika

Chief Financial Officer

Kylås, Krister

Kylås, Krister