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Equinor's debt strategy is to support the overall financial flexibility of the group and ensure competitive terms and conditions on long-term debt. 

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Contacts for debt and credit ratings

About our external debts, loans and bond issuances

Normally the parent company, Equinor ASA, incurs the external debt and then extends loans or equity to wholly owned subsidiaries to fund capital requirements within the group.

Equinor Energy AS is co-obligor or guarantor of existing debt securities and other loan arrangements of Equinor ASA. As co-obligor, Equinor Energy AS assumes and agrees to perform, jointly and severally with Equinor ASA, all payments and covenant obligations for this debt.

Long-term funding is raised when we identify a need for such financing based on our business activities and cash-flows or to pre-fund when market conditions are considered favourable.

Equinor has been a regular bond issuer and Equinor’s current long-term ratings are AA- and Aa2 from S&P and Moody’s, respectively. 

Bond issuances* 2009 - 2018 per currency
(Equivalent in USD) Updated 30.09.2018

bond-assuances-equinor-2009-2018 -30-09.svg

*Issuance activity under US Shelf, EMTN and separate documentation.

Debt strategy

Equinor's debt strategy is to support the overall financial flexibility of the group and ensuring competitive terms and conditions on long-term debt.

The Key Elements:

  • Bond issuances, as a main rule, are centralized at the corporate level. Occasionally project financing or direct funding can be done at subsidiary level.
  • Access to a well-diversified investor base (geographical, maturity and type)
  • To limit the refinancing risk, Equinor will seek to maintain a smooth maturity profile with a high “Average Year To Maturity” (9 years as of 31 December 2017). Annual redemptions will normally not exceed 5% of capital employed (as of 31 December 2017 equivalent to about USD 3 billion) in each of the next five years.
  • By issuing both fixed and floating interest rate debt, Equinor’s funding sources become more diversified through reaching a broader spectrum of bond investors.
  • Bonds are normally issued at fixed rates in a variety of currencies.
  • Pari passu ranking and covenants: Negative pledge to ensure equal treatment of investors. No financial covenants.

Debt programmes

Equinor has established the following debt programmes to ensure financial flexibility across markets and maturities. The company continuously looks to expand the portfolio of programmes, if relevant from a diversification and pricing point of view.

Latest update

Valid to

Programme

Limit

Rating

Utilization

        Moody's S&P As of
2017-12-31
   

US Commercial Paper (USCP)

USD 5 billion

P-1

A-1+

USD 500 million

2018

2019

Euro Medium Term Note Programme (EMTN)

EUR 20 billion

Aa2

AA-

EUR 9.6 billion*

2017

2020

US Shelf Registration

Unlimited

Aa2

AA-

USD 13.7 billion*

   

Separate Documentation

N/A

-

-

USD 1.3 billion*

The USCP program is used for shorter maturities (up to 364 days), while the EMTN Programme and the US Shelf Registration mainly are used for longer maturities.
*Exchange rates as fixed by Norges Bank 31.12.2017

The different funding programmes ensure that Equinor has sufficient flexibility when choosing the following:

  • Maturity
  • Currency
  • Interest Rate (Fixed or Floating)
  • Geographic Market (Europe, USA or Asia)

US Shelf Registration Statement
The registration statement is a filing with the Securities and Exchange Commission in the U.S and it permits multiple public debt offerings without having a separate prospectus for each offering. The registration statement is the base prospectus and will be updated with prospectus supplements for any subsequent debt offerings. The base prospectus is updated every third year.

The EMTN programme
The EMTN Programme was established in 1997 and is listed on the London Stock Exchange. The Programme ensures Equinor access to non-US markets and is a good complement to the US Shelf Registration.

The Programme will normally be updated on a yearly basis and was last utilized in November 2016.

The EMTN Programme was last updated 27 April 2018 with an expiry in April 2019. The Programme has a limit of EUR 20 billion.

Debt documentation:

Maturity profile

The graph below shows the maturity profile of bonds outstanding as of 30 September 2018

maturity-profile-equinor-30.09.2018.svg

Total long-term bond debt: USD 25.0 billion
Average years to maturity = 9.0 years as of 30 September 2018

Bond issuances

The table shows Equinor's larger outstanding bond issuances (sorted by maturity):

ISIN code

Currency

Amount (Million)

Rate (%)

Start Date

Maturity Date

Listing

US85771PAS11

USD

750

3m LIBOR +46bps

08.11.2013

08.11.2018

Not Listed

XS1190623907

EUR

500

3m EURIBOR +20bps

17.02.2015

19.08.2019

London Stock Exchange

US85771PAW23

USD

750

2.25% semi-annual

10.11.2014

08.11.2019

Not Listed

XS0965065898

USD

300

3m LIBOR +55bps

27.08.2013

27.08.2020

Not Listed

XS0969574325

EUR

850

2% annual

10.09.2013

10.09.2020

London Stock Exchange

US85771PAP71

USD

750

2.9% semi-annual

08.11.2013

08.11.2020

Not Listed

XS0416848520

EUR

1 200

5.625% annual

11.03.2009

11.03.2021

London Stock Exchange

US85771PAV40

USD

500

2.75% semi-annual

10.11.2014

10.11.2021

Not Listed

US85771PAF99

USD

750

3.15% semi-annual

23.11.2011

23.01.2022

Not Listed

XS0040868480

USD

250

7.875% semi-annual

09.12.1992

09.12.2022

Not Listed

US85771PAG72

USD

1 100

2.45% semi-annual

21.11.2012

17.01.2023

Not Listed

XS1190624111

EUR

1000

0.875 % annual

17.02.2015

17.02.2023

London Stock Exchange

US656531AC45

USD

300

7.75% semi-annual

15.06.1993

15.06.2023

Not Listed

US85771PAK84

USD

900

2.65% semi-annual

15.05.2013

15.01.2024

Not Listed

US85771PAN24

USD

1 000

3.7% semi-annual

08.11.2013

01.03.2024

Not Listed

US85771PAX06

USD

500

3.25% semi-annual

10.11.2014

10.11.2024

Not Listed

XS0969572204

EUR

650

2.875% annual

10.09.2013

10.09.2025

London Stock Exchange

NO0010689607

NOK

2 000

4.13% annual

16.09.2013

16.09.2025

Oslo Stock Exchange

US656531AD28

USD

250

7.15% semi-annual

15.11.1995

15.11.2025

Not Listed

XS1515222385  EUR 600 0.750% annual 09.11.2016 09.11.2026 London Stock Exchange

XS1190624038

EUR

1250

1.25% annual

17.02.2015

17.02.2027

London Stock Exchange

US656531AM27

USD

481

7.25% semi-annual

25.05.2000

23.09.2027

Not Listed

US656531AG58

USD

250

6.8% semi-annual

15.01.1998

15.01.2028

Not Listed

XS0092541969

GBP

225

6.125% annual

27.11.1998

27.11.2028

London  Stock Exchange

US24820RAG39

USD

500

6.5% semi-annual

01.12.1998

01.12.2028

Not Listed

US656531AJ97

USD

275

7.15% semi-annual

15.01.1999

15.01.2029

Not Listed

XS0416848793

GBP

800

6.875% annual

11.03.2009

11.03.2031

London Stock Exchange

XS1190624202

EUR

1000

1.625% annual

17.02.2015

17.02.2035

London Stock Exchange

XS1515222468  EUR 600 1.625% annual 09.11.2016 09.11.2036 London Stock Exchange

US85771PAC68

USD

750

5.1% semi-annual

17.08.2010

17.08.2040

Not Listed

XS0969574598

GBP

350

4.25% annual

10.09.2013

10.04.2041

London Stock Exchange

US85771PAE25

USD

650

4.25% semi-annual

23.11.2011

23.11.2041

Not Listed

US85771PAL67

USD

850

3.95% semi-annual

15.05.2013

15.05.2043

Not Listed

US85771PAQ54

USD

750

4.8% semi-annual

08.11.2013

08.11.2043

Not Listed

Details on debt

As of 30 September 2018 the total remaining long-term bond debt is USD 25.0 billion and split as follows:

Average remaining tenor

average-remaining-tenor-09-2018.svg

Issued bonds split per currency

issued-bonds-split-per-currency-equinor-09-2018.svg

Financial ratios

Net debt over capital employed (1)

net-debt-equinor-2018-01.svg

Operating cashflow (2)

operating-cash-flow-equinor-2018-02.svg

Capital expenditure (3)

capital-expenditure-equinor-2018-03.svg

Dividend per share (4)

dividend-per-share-equinor-2018-04.svg

Source/Detailed information: 2017 Annual Report on form 20-F

(1) Page 64 (net debt to capital employed adjusted)

(2) Page 63

(3) Page 63

(4) Page 239 (for further information to "Shareholder's equity", hereunder the SCRIP programme, reference is given to page 173, note 17)

Credit facility

Equinor has a multicurrency revolving credit facility of USD 5 billion, including USD 3 billion «swing line» (same day value) option. The facility was signed 26 June 2015 and is available for 5 years. Equinor had the option to further extend the maturity twice by one additional year. Both extension options have been exercised and the validity of the facility is now 24 June 2022. The credit facility is used as a backstop facility for the group’s US CP program.

Participating banks:  
Bank of America Merrill Lynch Barclays
BNP Paribas CIBC
Citibank Credit Suisse
Danske Bank Deutsche Bank
DNB Goldman Sachs
HSBC JP Morgan 
Jyske Bank Mizuho
Morgan Stanley Nordea
Santander Skandinaviska Enskilda Banken 
Société Générale Svenska Handelsbanken
Swedbank  

Credit rating

A strong credit rating is important to Equinor in order to ensure necessary financial flexibility to support a dynamic strategy through economic and market cycles.

Equinor has credit ratings from Moody's and Standard and Poor’s and the stated objective is to have credit ratings at least within the single A category on a stand-alone basis. (Current corporate rating includes one notch uplift from Standard & Poor’s and two notch uplift from Moody’s). This rating ensures necessary predictability when it comes to funding access to relevant capital markets at favorable terms and conditions.

Equinor’s current credit ratings are as follows:

  Moodys Standard & Poor's

Long-term rating

Aa2

AA-

Short-term rating

P-1

A-1+

Outlook

Stable

Stable

rating development for Equinor

Historic rating since IPO in 2001

rating-development-equinor-2018-new.svg

Debt presentations

On this site Equinor post the most current (last 12 months) debt investor presentations in PDF format.

Please check regularly for updates.

Contacts for debt and credit ratings

Investor Relations. Employee
Anca Jalba
Manager Finance, Head of Corporate Financing & Analysis

 +47 410 87 988

Investor Relations. Employee
Sten Haarr
Principal Analyst Finance, Corporate Financing & Analysis
philippe-cellerosi
Philippe Cellerosi
Principal Analyst Finance, Corporate Financing & Analysis