Notes

Other current assets

Other current assets are bank deposits in USD and with agreed short-term interest due dates of 3- 6 months.

As a consequence of the exit from SN Power, substantial liquidity was available and was placed in temporary investments: First, loans were extended to three banks with an average interest rate of 1.5% + LIBOR and a maturity of 5 years, with linear repayment after the first year. Second, USD deposits were placed in banks with fixed-interest periods of 1–6 months.

Furthermore, Allianz has been commissioned to manage USD 500 million. The portfolio consists of highly liquid covered bonds and has a weighted credit rate of AA- and average maturity of 3.3 years. The portfolio is to be mainly invested in development banks, i.e. within the sector in which we operate ourselves. Up to 40% can be invested in other sectors, however, but the bonds must then meet the requirements of either being green and sustainable or having a social impact. Norges Bank’s Investment Management’s exclusion list is also applied. 38% of the portfolio is invested in euros and 7% in sterling but hedged against USD by means of 3-month rolling futures contracts. Hedging contracts have been made for EUR 164.1 million and GBP 25.6 million. The value of the portfolio has fallen in pace with expectations of higher key policy rates, and we expect further falls in the period ahead. However, Norfund intends to hold the portfolio until maturity, with the result that the average annual return is estimated at 0.88% for the life of the portfolio.