Norwegian Credit Market Overview

Transcription

1 Norwegian Credit Market Overview 6 April 217 Haseeb Syed Bendik Engebretsen Jonas Meyer Head of Credit Research Norway Credit Research Analyst Credit Research Analyst Phone Phone Phone Mobile Mobile Mobile haseeb.syed@danskebank.com bee@danskebank.com mey@danskebank.com Denmark HolmensKanal Copenhagen K Finland Pohjoisesplanadi 37A 1 Helsinki Norway Bryggetorget 4 17 Oslo Sweden Norrmalmstorg Stockholm United Kingdom 75 King William Street London EC4N 7DT This document is intended for institutional investors and is not subject to all the independence and disclosure standards applicable to debt research reports prepared for retail investors Investment Research Important disclosures and certifications are contained from page 35 of this report.

2 (bps) USDm Buy Golar LNG Partners outright signing of long-term contracts set to tighten s (1) The on LNG shipping and FSRU bonds have tightened significantly lately as all players in our coverage universe (HLNG, GMLP, GLOG and TGP) has issued bonds in 217. Golar LNG Partners has more market risk than peers as the average contract backlog length is shorter, at four years. We argue that there is still some upside potential in GOLP2 and GOLP3, triggered by potential signing of long-term contracts on its three vessels that come of contract in 217. The ability to sign new long-term contracts were proven by the signing of a two-year (potentially up to nine years with options) contract on Golar Grand on 17 March 217. Table 1. Fleet overview and contract backlog Vessel Vessel Built Ow ned Charter Counterparty Name Type year % end FY FY FY FY FY FY FY FY FY FY Methane Princess LNG>1, 23 1% 224 BG Group 5+5 years Golar Winter FSRU 24 1% 224 Petrobras Golar Spirit FSRU % 217 Petrobras Compensation to Aug. 218 Golar Mazo LNG>1, 2 6% 217 Pertamina 5+5 years Golar Freeze FSRU % 22 DUSUP 5 years Nusantara (NR Satu) FSRU % 222 Nusantara Regas 3 years Golar Grand LNG>1, 26 1% 217 Golar LNG / Major O&G Series of extension periods up to 9 years Golar Maria LNG>1, 26 1% 217 ENI Golar Eskimo FSRU 214 1% 225 Kingdom of Jordan Golar Igloo FSRU 214 1% 219 KNPC Golar Tundra FSRU 215 1% 221 West Africa Gas 5 years Table 2. Key credit metrics Credit metrics (216e) Golar LNG Partners Fixed-rate contract Höegh LNG GasLog Teekay LNG Partners EBITDA (USDm) NIBD/EBITDA 4.1x 6.2x 8.9x 5.6x Option Chart 1. Debt maturity profile (USDm) E 218E 219E 22E 221E Debt balloon Bond (net of restricted cash) Amortisation profile Chart 2. GMLP s bonds and the NOK BB curve TKLNG1, 155 GOLP1, 142 TKLNG2, 33 GLOG1, 278 GOLP3, 613 GOLP2, 544 GLOG2, 536 TKLNG4, TKLNG3, HLNG3, 465 HLNG2, 432 BB index curve TIBD/Total assets 69% 63% 64% 46% 1 HLNG1, 132 EBITDA margin 82% 48% 65% 71% Average backlog length 4 years 5 years 14 years 13y LNG, 5y LPG Years to maturity Source: Bloomberg, Danske Bank Markets Source: Bloomberg, Danske Bank Markets 2

3 (bps) Buy Teekay Offshore Partners outright yield of ~1% with declining risk (2) We recommend buyng Teekay Offshore Partners NOK bonds, on the back of: A promising outlook of the company s fleet; multiple newbuilds and conversions commencing contracts already from Q2 217, substantially improving CF. An improved liquidity and balance sheet since last year s financing initiatives A more sustainable strategy going forward; a shift from growth to execution We believe that uncertainty regarding 1) the financing of the remaining capex in 217, 2) refinancing risk regarding maturing bonds and 3) uncertainty regarding FPSO units maturing contracts, are all weighing too much on the current bond s. With the increased cash flow from the units commencing long-term contracts in 217, we estimate that the company should be able to repay the outstanding NOK bonds at maturity, and see low refinancing risk connected to the unsecured bonds. Table 1. Key credit metrics Credit metrics E 218E EBITDA (USDm) NIBD/EBITDA 4.8x 4.9x 5.1x 4.7x 3.7x EBITDA interest coverage Table 2. Outstanding bonds Ticker Yield to maturity 5.2x 5.1x 4.1x 4.7x 5.4x Outstanding (m) Coupon Base / Type Maturity TOP2 1.2% NOK % 3MN Nov-18 TOP4 1.3% NOK % 3MN Dec-18 TOP5 9.6% NOK 1, 4.25% 3MN Jan % USD 3 6.% Fixed Jul-19 Chart 1. Bond maturity profile (USDm) USD bond (Jul. 219) TOP4 (Des. 218) TOP5 (Jan. 219) TOP2 (Nov. 218) Chart 2. TOO s bonds and the NOK HY curve TOP4, 986 TOP5, 945 TOP2, 953 HY index curve Years to maturity Source: Bloomberg, Danske Bank Markets Source: Bloomberg, Danske Bank Markets 3

4 Moody s corporate credit s high yield widening since start of March Moody s B s over LIBOR by maturity (bp) Moody s BBB s over LIBOR by maturity (bp) years 5 years 7 years 3 year index: March 2nd: 328bp April 3rd: 371bp 43bp increase 328 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar Year 5 Year 7 Year May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 Moody s five-year premiums by rating (bp)* Moody s five-year s over LIBOR by rating (bp) Aaa Aa2 A2 Baa2 Ba2 B2 Caa-C Aaa Aa A Baa Ba B Caa-C Baa2 Ba2 B Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb * Premiums calculated as bp Low rating bp High rating. Source: Moody s Investor Service, Danske Bank Markets (all charts) 4

5 Average (bps) Average (bps) bps bps While European s widen, Norwegian corporate bond s reflect more comfort European vs Norwegian high-yield s (bp) 5-Years NOK BB index 1, 5-Years NOK HY index 8 itraxx Crossover Mar-15 Jul-15 Nov-15 Mar-16 Jul-16 Nov-16 Mar-17 NOK BB curves: April 217 vs April 216 European versus Norwegian investment-grade s 5 NOK 5-year A-index NOK 5-year BBB-index 4 itraxx Main Mar-15 Jul-15 Nov-15 Mar-16 Jul-16 Nov-16 Mar-17 NOK IG curves: April 217 vs April Years to maturity BB curve 217 BB curve Years to maturity IG curve 217 IG curve 216 Source: Bloomberg, Danske Bank Markets (all charts) 5

6 bps bps Traded volumes (NOKm) bps USD/bbl A more stable oil facilitates steady performance in Norwegian high-yield credits financials drop has been maintained, and is now at ~11bp discount of the A-index on par with last year s level Norwegian high yield vs oil (Brent)* (year-week) Norwegian investment grade vs oil (Brent) Distressed volumes (r.h.a) Distressed index (% of par, l.h.a) Brent (USD/barrel l.h.a) NOK 5-year A-index 19 NOK 5-year BBB-index 17 Brent spot (r.h.a) Mar-16 Jul-16 Nov-16 Mar Y senior financials vs Norwegian corporate IG (bp) NOK 5-year A-index NOK financials Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar Norwegian senior financials and municipalities (bp) NOK financials Oslo municipality OMF index Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 Distressed volumes defined as the sum of volumes of bonds at a below 7% of par between 215 and end-of-year 216. Source: Bloomberg, Danske Bank Markets (all charts) 6

7 (NOKbn) AuM (NOKbn) (NOKbn) AuM (NOKbn) Net inflows in both IG and HY funds in March High yield inflows of NOK854m in March, bringing YTD net inflows of NOK2.1bn. IG flows also positive, at NOK1.8bn. Norwegian high-yield fund flows Sum HY flows HY AuM Aug-15 Nov-15 Feb-16 May-16 Aug-16 Nov-16 Feb Norwegian investment-grade fund flows 1. Sum IG flows IG AuM Aug-15 Nov-15 Feb-16 May-16 Aug-16 Nov-16 Feb The 1 largest high-yield funds AuM (YTD change, NOKm AuM)* DNB High Yield Handelsbanken Høyrente Holberg Kreditt Pareto Høyrente Storebrand Rente+ Alfred Berg Høyrente CII (NOK) SR-Rente Eika Kreditt Pareto Kreditt B Landkreditt Extra 12%, 7,366 9%, 5,92 9%, 4,184-5%, 2,755-7%, 2,65 8%, 1,728 4%, 1,272 37%, 927 5%, 852 7%, 786 *As per March 2th. Source: Verdipapirforbundet, Danske Bank Markets (all charts) 7

8 Issued volumes Q1 (NOKbn) Primary corporate IG bonds were 3x last years volumes and on par with preceding years January primary market: Corporate IG bond volumes Corporate IG Q1 17 bond issuance by sector Jan Feb Mar Corporate investment-grade bond settlements last month Utilities Real Estate Auto Convenience Goods Telecom/IT Media Transportation Consumer Services 1, ,323 8,239 Issued Outstanding Settlement Maturity Base rate / ISIN Issuer (NOKm) (NOKm) Currency Date Date Risk Coupon (%) Coupon type Issue Type NO Barcode 121 Holding AS 26 2,795 NOK Mar-17 Dec Fixed Bonds NO Bergen-Os Bompengeselskap NOK Mar-17 Mar-27 Municipality Guaranteed 2.73 Fixed Bonds NO AS Entra NOK Mar-17 Mar NIBOR 3 Month Bonds NO17461 Entra 4 1,2 NOK Mar-17 Jun Fixed Bonds NO Fredrik Selmers vei NOK Mar-17 Mar Fixed Bonds NO Eiendomsinvest Hafslund AS 1 6 NOK Mar-17 Sep NIBOR 3 Month Bonds NO17693 Lyse AS 8 33 NOK Mar-17 Jul NIBOR 3 Month Bonds NO MøllerGruppen AS 4 4 NOK Mar-17 Mar NIBOR 3 Month Bonds NO NorgesGruppen 3 3 NOK Mar-17 Feb NIBOR 3 Month Bonds NO OBOS Forretningsbygg AS NOK Mar-17 Mar Fixed Bonds NO17982 Promenaden High Street AS 1, 1, NOK Mar-17 Mar Fixed Bonds NO Rikshem AB 5 5 NOK Mar-17 Mar Fixed Bonds NO17883 Rikshem AB 4 4 NOK Mar-17 Mar Fixed Bonds XS Scania CV (publ) 2 2 NOK Mar-17 Mar-2.74 NIBOR 3 Month Bonds XS Scania CV (publ) 5 5 NOK Mar-17 Mar NIBOR 3 Month Bonds NO Schibsted 5 5 NOK Mar-17 Mar NIBOR 3 Month Bonds XS Statkraft AS 4,564 4,564 EUR Mar-17 Mar Fixed Bonds NO Statnett SF 9 9 NOK Mar-17 Mar Fixed Bonds NO Statnett SF 1,4 1,4 NOK Mar-17 Mar-24.7 NIBOR 3 Month Bonds NO Statnett SF 6 6 NOK Mar-17 Mar Fixed Bonds NO Tunga Invest II AS NOK Mar-17 Mar Fixed Bonds NO Vasakronan AB (publ) 1, 1, NOK Mar-17 Jan NIBOR 3 Month Bonds NO Wenaas Plaza Hotell AS 1, 1, NOK Mar-17 Mar-2.9 NIBOR 3 Month Bonds Issuances with settlement after March 217 are excluded from the table Source: Stamdata, Danske Bank Markets (all charts and table) 8

9 Issued volumes Q1 (NOKbn) High primary activity amongst corporate HY bonds, largest volumes since 214 January primary market: Corporate high-yield bond volumes March HY corp. bond issuance by sector (NOKm) Jan Feb Mar Shipping Oil and gas services Transportation Industry ,41 7, Telecom/IT Health Care Real Estate Corporate high-yield bond settlements last month ISIN Issuer Issued (NOKm) Outstanding (NOKm) Currency Settlement Date Maturity Date Risk Coupon (%) Base rate / Coupon type Issue Type NO Care Bidco AS NOK Mar-17 Mar NIBOR 3 Month Bonds NO Dof Subsea AS 1,56 1,56 USD Mar-17 Mar Fixed Bonds NO Gaming Innovation Group Ltd SEK Mar-17 Mar-2 7. Fixed Bonds NO Golden Close Maritime Corp USD Mar-17 Mar Fixed Bonds NO Ltd Golden Close Maritime Corp USD Mar-17 Sep-21 Super. Zero Coupon Bonds NO Ltd Golden Close Maritime Corp USD Mar-17 Mar-22 Super 1. Fixed Bonds NO Ltd Goliath Offshore Holdings USD Mar-17 Jun-18 Super 15. Fixed Bonds NO Pte. Jacob Ltd. Holm & Sønner Holding EUR Mar-17 Mar EURIBOR 3 Bonds NO A/S Koggbron Projekt AB (publ) 4 4 USD Mar-17 Mar-19 Subordinated 18. Month Fixed Bonds NO Koggbron Projekt AB (publ) NOK Mar-17 Mar-19 Subordinated 18. Fixed Bonds NO Koggbron Projekt AB (publ) USD Mar-17 Mar Fixed Bonds NO Koggbron Projekt AB (publ) NOK Mar-17 Mar Fixed Bonds NO Norwegian Air Shuttle SEK Mar-17 Aug-2 5. STIBOR 3 Month Bonds NO Olympic Subsea 3 3 NOK Mar-17 Jul Fixed Bonds NO Olympic Subsea 6 6 NOK Mar-17 Jul-22. Zero Coupon Bonds Issuances with settlement after December 216 are excluded from the table Source: Stamdata, Danske Bank Markets (all charts and table) 9

10 Traded volumes (NOKbn) Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar Traded volumes (NOKbn) Fraction of volumes Secondary Q1 volumes greatly exceeded previous years in both corporate HY and IG Corporate high-yield secondary market volumes (NOKm) Price intervals for high-yield volumes < >1 1% 5 4 8% 6% % 2% % Jan Feb Mar Corporate IG secondary market volumes (NOKm) Top ten corporate IG names in March (NOKm) Jan Feb Mar OLAV THON EIENDOMSSELSKA BKK AS AGDER ENERGI AS STATNETT SF HAFSLUND THON HOLDING AS STEEN & STROM OBOS FORRENTINGSBYGG AS NORTURA SA KONGSBERG GRUPPEN VEIDEKKE Note: Figures may include taps Source: Oslo Børs, Danske Bank Markets (all charts) 1

11 Issued (NOKbn) Traded volumes (NOKbn) Issued (NOKbn) Traded volumes (NOKbn) Healthy levels of covered bond primary funding in 216; highest level since 211 Primary activity senior bank bonds senior bank bonds Sum of Issued Amount Average of Coupon Jan Feb Mar Primary activity covered bonds covered bonds Sum of Issued Amount Average of Coupon Jan Feb Mar Source: Oslo Børs, Danske Bank Markets (all charts) 11

12 Traded volumes and s for the most liquid bonds in March Volumes and s for most shipping bonds Average Spread Traded volumes (NOKm) Traded volumes (NOKm) ODF8 (11.47) SNI4 (14.38) SFLN2 (1.79) OCY4 (1.55) HLNG1 (12.42) GLOG2 (15.7) TOP5 (91.91) SNI3 (12.79) SNI5 (98.33) GLOG1 (14) Volumes and s for most real estate bonds Average Spread Traded volumes (NOKm) Traded volumes (NOKm) OLT63 (1.7) OBFB2 PRO (11.2) SST44 (1.67) THOL19 PRO (1.17) OLT59 (1.24) ENEID64 (11.2) ENEID88 (11.13) OLT55 (13.64) ENEID55 (1.6) ENEID79 (1.15) Average (bps) Average (bps) Volumes and s for most oil-related bonds Average Spread Traded volumes (NOKm) Traded volumes (NOKm) EMGS2 (7) FAR4 (27.38) BWO2 (92.7) BWO3 (9.74) EFOR1 PRO (75.95) BON5 (1.3) SDRL7 (33.92) DETNOR2 (116.5) VOSUB1 PRO (97.15) NADL1 (34.71) Volumes and s for most other* industries Average Spread Traded volumes (NOKm) Traded volumes (NOKm) HNA127 (1.34) SSO1 G (15.63) BKK25 G (99.67) NORG73 (1.87) STANE46 (1.51) AEN4 (11.57) BKK24 (1.44) AINMT1 (14.64) MOLLG1 PRO (1.48) NORG64 (1.72) Average (bps) Average (bps) * Figures include tap issuances and repurchases. Exceptions are Crayon, Golar and Dofsub, which have all been removed from the graphs due to company repurchases. Note: In brackets the average throughout past month; other industries include the sectors of consumer and convenience goods, transportation, industry, auto, telecom and more Source: Oslo Børs, Danske Bank Markets (all charts) 12

13 % of par (inverted) and credit s on bonds in selected industries Overview of shipping and oil service bonds liquidity and s in 217 and s in the shipping industry 6% 4% 2% % 217 1, and cash in the oil services industry 2% 15% 1% 5% % * is calculated as the sum of each trade s fraction of the average outstanding bond for 217; liquidity includes tap issues Source: Oslo Børs, Danske Bank Markets (all charts) 13

14 (quoted) Relative value in the oil service industry TTM over s oil service industry 12 1 PGSNO 18 DOFSUB7 BON3 BON5 JACKT1 PRO AWDR1 BWO1 DEED1 RET BON6 BWO2BWO3 Average TTM Average BWO4 8 EFOR1 PRO BLH2 PRO EMGS2 6 SIOFF2 FOE5 BOA2 PRO BOAO3 PRO (1) 4 2 BOAS1 PRO SDRL8 NADL1 BOAO2 PRO PLCS2-B PLCS3-B Time to maturity * Based on mid- on 4 April (all charts). Source: Bloomberg, Oslo Børs, Danske Bank Markets 14

15 (quoted) Relative value in the oil service industry leverage ratio versus credit s LTM NIBD/EBITDA over s oil service industry 12 Average NIBD/EBITDA 1 8 BON3 DEED1 RET BON5 BON6 PGSNO 18 BWO1 AWDR1 BWO2 BWO3 BWO4 BLH2 PRO Average 6 FOE5 SIOFF2 BOAO3 PRO (2) 4 2 SDRL8 NADL1 BOAS1 PRO BOAO2 PRO NIBD/EBITDA * Based on mid-. Source: Bloomberg, Oslo Børs, Danske Bank Markets 15

16 (quoted) Relative value in the oil services industry profitability vs credit s LTM EBITDA margin over s oil service industry Average EBITDA margin Average BWO1 BWO2 BWO4 BWO3 BON3 PGSNO 18 BON5 BON6 BLH2 PRO DEED1 RET AWDR1 6 SIOFF2 BOAO3 PRO FOE5 4 BOAS1 PRO SDRL8 NADL1 (3) 2 BOAO2 PRO % 1% 2% 3% 4% 5% 6% 7% LTM EBITDA margin * Based on mid- Source: Bloomberg, Oslo Børs, Danske Bank Markets 16

17 (quoted) Relative value in the oil services industry equity ratio vs credit s Equity ratio over s oil service industry BON3 DEED1 RET DOFSUB7 BON5PGSNO 18 BWO1 BWO2 BWO3 BON6 BWO4 BLH2 PRO EMGS2 Average Average equity ratio AWDR1 6 SIOFF2 FOE5 4 BOAS1 PRO SDRL8 (4) 2 PLCS2-B PLCS3-B 15% 25% 35% 45% 55% 65% 75% Equity ratio * Based on mid- Source: Bloomberg, Oslo Børs, Danske Bank Markets 17

18 Quoted * Relative value in the shipping industry TTM over quoted cash shipping industry WBULK1 PRO TOP5 TOP4 TOP2 Average TTM Average 7 (5) GOLP2 GLOG2 ODF8 ODF7 TKLNG4 HLNG2 TKLNG3 OCY4 ODF6 SFLN3 OCY3 SNI5 OCY2 SNI6 TKLNG2 SNI4 GLOG1 WWI19 PRO SNI3 WWI22 WWI23 Møller - Mærsk 21 Møller - Mærsk 23 Møller - Mærsk Time to maturity Source: Bloomberg, Oslo Børs, Stamdata, Danske Bank Markets 18

19 Quoted * Relative value in the shipping industry leverage ratio vs cash LTM NIBD/EBITDA over cash shipping industry Average NIBD/EBITDA Average WBULK1 PRO (6) TOP5 TOP4 TOP2 GOLP2 ODF7 HLNG2 ODF8 OCY4 SNI5 OCY3 OCY2 SFLN3 ODF6 SNI6 SNI4 WWI19 PRO WWI23 SNI3 Møller WWI22 - Mærsk 21 Møller - Mærsk 23 Møller - Mærsk 26 GLOG2 TKLNG4 TKLNG3 TKLNG2 GLOG NIBD/EBITDA Source: Bloomberg, Oslo Børs, Stamdata, Danske Bank Markets 19

20 Quoted * Relative value in the shipping industry profitability vs cash LTM EBITDA margin over s shipping industry Average EBITDA margin Average 1 8 TOP5 TOP4 TOP2 (7) 6 ODF7 GLOG2 GOLP2 ODF8 TKLNG4 HLNG2 TKLNG3 OCY4 4 SNI5 SFLN3 OCY3 SNI6 SNI4 OCY2 TKLNG2 ODF6 2 SNI3 GLOG1 Møller - Mærsk 21 Møller - Mærsk 23 Møller - Mærsk 26 1% 2% 3% 4% 5% 6% 7% 8% 9% 1% LTM EBITDA margin Source: Bloomberg, Oslo Børs, Stamdata, Danske Bank Markets 2

21 Quoted * Relative value in the shipping industry equity ratio vs cash LTM equity ratio over s shipping industry Average Average equity ratio 1 8 TOP2 TOP4 TOP5 (8) 6 GOLP2 GLOG2 OCY4 SNI5 ODF7 ODF8 TKLNG4 HLNG2 TKLNG3 4 SFLN3 SNI6 ODF6 OCY2 TKLNG2 SNI4 WWI19 PRO 2 GLOG1 WWI23 SNI3 WWI22 Møller - Mærsk 21 Møller Møller - -Mærsk % 2% 25% 3% 35% 4% 45% 5% 55% Equity ratio Source: Bloomberg, Oslo Børs, Stamdata, Danske Bank Markets 21

22 Selected bonds - Oil service (1) (1) ISIN Ticker Issuer Risk NO NO17928 AWDR1 NO BDA1 PRO NO NO BLH2 PRO NO17279 BOA2 PRO NO BOAO2 PRO NO BOAO3 PRO Atlantica Tender Drilling Awilco Drilling Plc Bassdrill Alpha Ltd Beerenberg Holdco II AS Bluewater Holding B.V. Boa OCV AS Boa Offshore AS Boa Offshore AS NO BOAS1 PRO Boa SBL AS Subordinate d NO BON3 Bonheur NO BON5 Bonheur NO BON6 Bonheur NO BWO1 NO BWO2 NO BWO3 NO BWO4 BW Offshore Limited BW Offshore Limited BW Offshore Limited BW Offshore Limited NO DEED1 RET Deep Drilling 1 Maturity Date TTM (yrs) Outstanding NOKm Coupon (%) Coupon type / Base rate Bid Ask 23-Sep Fixed ,132 date 9-Apr Fixed Mar Jul Fixed ,626 6-Feb , Feb NIBOR 3 Month Dec , Fixed ,45 16-Mar ,761 7-Oct , 4.8 NIBOR 3 Month ,493 7-Mar ,45 18-Dec NIBOR 3 Month ,13 29-Sep ,571 2-Dec NIBOR 3 Month ,382 8-Jun , Apr NIBOR 3 Month ,12 13-Sep , Feb NIBOR 3 Month Mar Jul NIBOR 3 Month Mar Jul NIBOR 3 Month Mar Mar NIBOR 3 Month Apr Sep NIBOR 3 Month Mar Mar NIBOR 3 Month Apr Mar NIBOR 3 Month Mar Dec Fixed Nov ,372 Note: Data from 4 April Source: Bloomberg, Stamdata, Oslo Børs, Danske Bank Markets 22

23 Selected bonds - Oil service (2) (2) ISIN Ticker Issuer Risk NO DOFSUB7 Dof Subsea AS NO Dof Subsea AS NO DOLP2 NO EFOR1 PRO NO EMGS2 NO FOE5 NO NO NO HAVI4 NO16533 HAVI7 NO JACKT1 PRO NO NO NO NADL1 NO US716599AC95 US716599A C95 NO NO SDRL8 Dolphin Group E Forland AS Electromagneti c Geoservices Fred Olsen Energy Goliath Offshore Goliath Offshore Havila Shipping Havila Shipping Jacktel AS Latina Offshore Limited North Atlantic Drilling Ltd Oceanic Champion AS Petroleum Geo- Services Sea Trucks Group Limited Seadrill Ltd Sup. Maturity Date TTM (yrs) Outstanding NOKm Coupon (%) Coupon type / Base rate Bid Ask date 22-May ,3 5. NIBOR 3 Month Mar Mar , Fixed Mar NIBOR 3 Month Nov ,13 4-Sep NIBOR 3 Month ,735 2-Mar , Jun NIBOR 3 Month ,357 3-Mar , Feb ,25 3. NIBOR 3 Month ,88 3-Mar , Jun , Fixed Jun Fixed Nov NIBOR 6 Month Mar Nov NIBOR 3 Month , Mar ,692 9-Jul Fixed Mar Jul , Fixed ,87 3-Oct ,5 4.4 NIBOR 3 Month , Mar ,185 2-Feb Fixed , Dec , Fixed Mar , Fixed , Mar , STIBOR 3 Month ,34 16-Mar ,633 Note: Data from 4 April Source: Bloomberg, Stamdata, Oslo Børs, Danske Bank Markets 23

24 Selected bonds Shipping (1) (3) ISIN Ticker Issuer Risk NO GLOG1 NO GLOG2 NO GOLP1 NO GOLP2 NO NO HLNG1 NO HLNG2 NO NO JLA2 NO KSH3 PRO NO NO OCY2 NO OCY3 NO OCY4 NO ODF4 NO ODF6 NO ODF7 NO ODF8 GasLog Ltd GasLog Ltd Golar LNG Partners LP Golar LNG Partners LP Golar LNG Partners LP Höegh LNG Holdings Ltd. Höegh LNG Holdings Ltd. Höegh LNG Holdings Ltd. J. Lauritzen A/S Klaveness Ship Holding AS Navigator Holdings Ltd Ocean Yield Ocean Yield Ocean Yield Odfjell SE Odfjell SE Odfjell SE Odfjell SE Maturity Date TTM (yrs) Outstanding NOKm Coupon (%) Coupon type / Base rate Bid Ask date Jun NIBOR 3 Month Apr May NIBOR 3 Month Mar Oct NIBOR 3 Month Mar May , May , US-LIBOR 3 Month US-LIBOR 3 Month Apr Oct NIBOR 3 Month Mar Jun ,21 5. US-LIBOR 3 Month Feb ,5 5. NIBOR 3 Month Mar Oct NIBOR 3 Month ,477 3-Apr 85 3,936 May NIBOR 3 Month Jan Feb Fixed Mar , 3.9 NIBOR 3 Month Mar Apr , 4. NIBOR 3 Month Mar Sep NIBOR 3 Month Mar Apr NIBOR 3 Month Mar 1 58 Dec NIBOR 3 Month Mar Sep NIBOR 3 Month Feb Jan NIBOR 3 Month Mar Note: Data from 4 March Source: Bloomberg, Stamdata, Oslo Børs, Danske Bank Markets 24

25 Selected bonds Shipping (2) (4) ISIN Ticker Issuer Risk NO SFLN2 NO SFLN3 NO SNI3 NO SNI4 NO SNI5 NO SNI6 NO TKLNG1 NO TKLNG2 NO TKLNG3 NO TKLNG4 NO TOP2 NO TOP4 NO1799 TOP5 NO WBULK1 PRO NO WWI19 PRO NO WWI22 NO WWI23 Ship Finance International Ship Finance International Stolt-Nielsen Limited Stolt-Nielsen Limited Stolt-Nielsen Limited Stolt-Nielsen Limited Teekay LNG Partners L.P. Teekay LNG Partners L.P. Teekay LNG Partners L.P. Teekay LNG Partners L.P. Teekay Offshore Partn. Teekay Offshore Partn. Teekay Offshore Partn. Western Bulk Chartering AS Wilh. Wilhelmsen Wilh. Wilhelmsen Wilh. Wilhelmsen Maturity Date TTM (yrs) Outstanding NOKm Coupon (%) Coupon type / Base rate Bid Ask date Oct NIBOR 3 Month Mar Mar NIBOR 3 Month Mar Mar , 4.8 NIBOR 3 Month Mar Sep , 5. NIBOR 3 Month Mar Mar , NIBOR 3 Month Mar Apr , NIBOR 3 Month Mar May NIBOR 3 Month Mar Sep NIBOR 3 Month Mar May , 3.7 NIBOR 3 Month Mar Oct ,2 6. NIBOR 3 Month Mar Nov NIBOR 3 Month Apr Dec NIBOR 3 Month Apr Jan , 4.3 NIBOR 3 Month Mar Apr NIBOR 3 Month , Mar 9.1 1,216 Jan NIBOR 3 Month Mar Jun NIBOR 3 Month Mar Apr NIBOR 3 Month Mar Note: Data from 4 March Source: Bloomberg, Stamdata, Oslo Børs, Danske Bank Markets 25

26 Selected bonds Industry (1) (5) ISIN Ticker Issuer Risk NO SMF2 PRO NO SMF3 PRO NO SMF4 NO NO NO AKER7 NO AKER9 NO16839 AKER11 NO AKER1 NO17115 AKER12 NO AKER13 NO AKSO1 NO AKSO2 NO ETRION2 NO HYARD1 PRO NO INFRA1 NO JAHO1 NO NO AB Stena Metall Finans AB Stena Metall Finans AB Stena Metall Finans AB Stena Metall Finans AB Stena Metall Finans Aker Aker Aker Aker Aker Aker Aker Solutions Aker Solutions Etrion Corporation Havyard Group Infratek Group Jacob Holm & Sønner Holding Jacob Holm & Sønner Holding Jacob Holm & Sønner Holding Maturity Date TTM (yrs) Outstanding NOKm Coupon (%) Coupon type / Base rate Bid Ask date Jun NIBOR 3 Month Mar Oct Nov May Jun STIBOR 3 Month STIBOR 3 Month STIBOR 3 Month STIBOR 3 Month Mar Mar Apr NIBOR 3 Month Apr Sep , 5. NIBOR 3 Month Mar Jun ,3 3.5 NIBOR 3 Month Mar Jun NIBOR 3 Month Mar Jul , STIBOR 3 Month Apr May , 3.5 NIBOR 3 Month Mar Jun ,5 4.3 NIBOR 3 Month Apr Oct , 4.2 NIBOR 3 Month Mar Apr Fixed Jan Jun NIBOR 3 Month Mar , May NIBOR 3 Month Mar Apr Mar Mar STIBOR 3 Month EURIBOR 3 Month EURIBOR 3 Month ,17 29-Mar Note: Data from 4 March Source: Bloomberg, Stamdata, Oslo Børs, Danske Bank Markets 26

27 Selected bonds Industry (2) (6) ISIN Ticker Issuer Risk NO NO17565 NO KOG6 NO KOG7 NO KOG8 NO KOG9 NO KOG1 NO KOG11 NO LM Group 22 NO16523 NHY5 NO REC3 NO NO SSO1 G NO SOLBIO1 Jotun A/S Jotun A/S Kongsberg Gruppen Kongsberg Gruppen Kongsberg Gruppen Kongsberg Gruppen Kongsberg Gruppen Kongsberg Gruppen LM Group Holding A/S Norsk Hydro REC silicon Sanjel Corporation Scatec Solar Solör Bioenergi Holding AB NO1664 TIZ1 PRO TiZir Ltd NO VEI5 Veidekke Veritas NO17856 VEPE1 Petroleum Serv NO YAR9 NO YAR1 Yara International Yara International Maturity Date TTM (yrs) Outstanding NOKm Coupon (%) Coupon type / Base rate Bid Ask Mar NIBOR 3 Month Mar Fixed date Sep NIBOR 3 Month Mar Sep Fixed Dec Jun , 1.3 NIBOR 3 Month Mar Jun , 3.2 Fixed Mar NIBOR 3 Month Mar Dec Fixed Feb Oct NIBOR 3 Month Jul ,5 5.4 Fixed Jan May Fixed ,148 2-Mar ,29 Jun , Fixed Nov NIBOR 3 Month Mar Nov NIBOR 3 Month Mar Sep , Fixed Mar Jun NIBOR 3 Month Mar Apr Fixed Mar Dec ,2.7 NIBOR 3 Month Mar Dec Fixed Feb Note: Data from 4 March Source: Bloomberg, Stamdata, Oslo Børs, Danske Bank Markets 27

28 Selected bonds Consumer goods and services (7) Note: Data from 4 March Source: Bloomberg, Stamdata, Oslo Børs, Danske Bank Markets ISIN Ticker Issuer Risk NO NO FKOV9 PRO NO1765 FKOV1 PRO NO NORG65 NO NORG73 NO NORG79 NO NORG84 NO NORG92 NO NORG11 NO NORG111 Circle K AS Felleskjøpet Agri SA Felleskjøpet Agri SA NorgesGruppen NorgesGruppen NorgesGruppen NorgesGruppen NorgesGruppen NorgesGruppen NorgesGruppen NO NORT5 PRO Nortura SA NO NORT11 PRO Nortura SA NO NORT12 PRO Nortura SA NO17446 NORT19 PRO Nortura SA NO NORT21 PRO Nortura SA NO NO ORK8 NO ORK82 NO ORK83 NO ORK84 Nortura SA Orkla Orkla Orkla Orkla Maturity Date TTM (yrs) Outstanding NOKm Coupon (%) Feb Fixed Coupon type / Base rate Bid Ask date Mar Fixed Oct Mar Fixed Dec Fixed Jun NIBOR 3 Month Mar Nov Fixed Aug May NIBOR 3 Month Mar Sep Fixed Mar NIBOR 3 Month Feb Feb NIBOR 3 Month Jan NIBOR 3 Month Mar Apr Fixed Mar Apr Fixed Jan Sep NIBOR 3 Month Apr Feb NIBOR 3 Month Apr NIBOR 3 Month Jan , 4.4 Fixed Jun Feb ,5.7 NIBOR 3 Month Feb Mar ,.9 NIBOR 3 Month Apr Sep , 2.4 Fixed Jan

29 Selected bonds Transportation (8) Note: Data from 4 March Source: Bloomberg, Stamdata, Oslo Børs, Danske Bank Markets ISIN Ticker Issuer Risk NO TLG1 AS Tallink Grupp NO AVINOR1 Avinor AS NO AVINOR11 Avinor AS XS Avinor AS NO COLG1 PRO Color Group AS NO COLG12 Color Group AS NO COLG13 Color Group AS NO DFDS2 DFDS A/S NO FJELL2 PRO Fjellinjen AS NO FJELL4 PRO Fjellinjen AS NO FJELL3 PRO Fjellinjen AS NO FJELL9 PRO Fjellinjen AS NO FJELL1 PRO Fjellinjen AS NO FJELL11 PRO Fjellinjen AS NO FJELL14 PRO Fjellinjen AS NO FJELL15 PRO Fjellinjen AS Municipality Guaranteed NO FJELL16 PRO Fjellinjen AS NO ICELANDAIR 1 NO NAS6 NO NAS7 NO Icelandair Group Hf. Norwegian Air Shuttle Norwegian Air Shuttle Norwegian Air Shuttle Maturity Date TTM (yrs) Outstanding NOKm Coupon (%) Coupon type / Base rate Bid Ask date Oct NIBOR 3 Month Mar May , 4.5 Fixed May Fixed Mar Mar , Fixed Sep NIBOR 3 Month Mar Jun NIBOR 3 Month Mar Dec NIBOR 3 Month Mar Mar NIBOR 3 Month Mar Sep Fixed Feb Sep Fixed Dec Fixed Dec NIBOR 3 Month Mar Mar NIBOR 3 Month Mar Sep NIBOR 3 Month Mar Sep NIBOR 3 Month Sep Fixed Dec NIBOR 3 Month Feb Oct , US-LIBOR 3 Month May , NIBOR 3 Month Mar Dec , Fixed Apr Aug STIBOR 3 Month

30 Selected bonds Real estate (1) (9) Note: Data from 4 March Source: Bloomberg, Stamdata, Oslo Børs, Danske Bank Markets ISIN Ticker Issuer Risk NO BOR3 Borgestad NO CITYT1 NO CITYT2 NO NO ENEID29 NO ENEID6 NO16737 ENEID64 NO ENEID69 NO ENEID79 NO17461 ENEID88 NO ENTRA9 NO ENTRA1 NO ENTRA12 G NO NO NO NO NO HOIN1 NO Citycon Treasury B.V Citycon Treasury B.V Eiendomsspar AS Entra Entra Entra Entra Entra Entra Entra Entra Entra Entra Fram Eiendom AS Frogner Boligeiendom AS Frysjaveien Eiendomsinvest Hospitality Invest AS IB Bostad 18 AB (publ) Maturity Date TTM (yrs) Outstanding NOKm Coupon (%) Coupon type / Base rate Bid Ask date Oct NIBOR 3 Month Mar Mar , NIBOR 3 Month Feb Sep ,4 3.9 Fixed Apr Fixed Nov Fixed Jan Feb Fixed Dec Sep ,2 1.3 NIBOR 3 Month Mar Sep Fixed Jan Aug ,2.6 NIBOR 3 Month Mar Jun ,2 2.5 Fixed Mar Jun , 1.1 NIBOR 3 Month Mar Jun ,1 2.5 Fixed Feb Sep ,.9 NIBOR 3 Month Mar Mar NIBOR 3 Month Oct Fixed Feb , 5.6 Fixed Nov Fixed Feb NIBOR 3 Month Mar Oct NIBOR 3 Month

31 Selected bonds Real estate (2) (1) Note: Data from 4 March Source: Bloomberg, Stamdata, ISIN Ticker Issuer Risk NO NO NO NO NO NO1726 NPRO5 NO NPRO6 NO Maturity Date TTM (yrs) Outstanding NOKm Coupon (%) Coupon type / Base rate Bid Ask Koggbron Projekt AB (publ) Mar Fixed Koggbron Projekt AB (publ) Mar Fixed Koggbron Subordinate Projekt AB (publ) Mar Fixed Koggbron Subordinate Projekt AB (publ) Mar Fixed Merkantilbygg Holding AS Norwegian Property Norwegian Property Nye Statens Hus AS NO OBOS17 PRO OBOS BBL NO OBOS18 PRO OBOS BBL NO OBOS19 PRO OBOS BBL NO OBOS2 PRO OBOS BBL NO OBOS21 PRO OBOS BBL NO OBOS23 PRO OBOS BBL NO OBOS22 PRO OBOS BBL NO17848 OBFB3 PRO NO NO NO OLT45 OBOS Forretningsbygg AS OBOS Forretningsbygg AS OBOS Nye Hjem AS Olav Thon Eiendomsselska p Sep Fixed date Oct NIBOR 3 Month Mar Jul , NIBOR 3 Month Feb Apr Fixed Nov NIBOR 3 Month Apr Dec Fixed Dec NIBOR 3 Month Nov Dec Fixed Jun Apr Fixed Sep Apr NIBOR 3 Month Mar Apr Fixed Apr Fixed Mar Fixed May Fixed May NIBOR 3 Month Mar Oslo Børs, Danske Bank Markets 31

32 Selected bonds Real estate (3) (11) Note: Data from 4 March Source: Bloomberg, Stamdata, Oslo Børs, Danske Bank Markets ISIN Ticker Issuer Risk NO OLT45 NO OLT46 NO OLT54 NO OLT55 NO OLT59 NO OLT63 NO OLT71 NO OLT84 NO OLT91 NO OLT9 NO OLT93 NO PPU1 NO RHEM 129 NO RHEM 135 NO RHEM 136 NO17883 RHEM 137 NO SBO1 NO17396 SST49 NO SST66 NO SST71 NO SST73 Olav Thon Eiendomsselskap Olav Thon Eiendomsselskap Olav Thon Eiendomsselskap Olav Thon Eiendomsselskap Olav Thon Eiendomsselskap Olav Thon Eiendomsselskap Olav Thon Eiendomsselskap Olav Thon Eiendomsselskap Olav Thon Eiendomsselskap Olav Thon Eiendomsselskap Olav Thon Eiendomsselskap Pioneer Public Properties AS Rikshem AB Rikshem AB Rikshem AB Rikshem AB Selvaag Bolig Steen & Strøm AS Steen & Strøm AS Steen & Strøm AS Steen & Strøm AS Maturity Date TTM (yrs) Outstanding NOKm Coupon (%) Coupon type / Base rate Bid Ask date May NIBOR 3 Month Mar May Fixed Feb Oct NIBOR 3 Month Mar Oct Fixed Mar Jun ,2.7 NIBOR 3 Month Mar Nov NIBOR 3 Month Mar May STIBOR 3 Month Mar May NIBOR 3 Month Jan Oct ,2.9 NIBOR 3 Month Jan Oct NIBOR 3 Month Mar Jan Fixed May , 5.3 NIBOR 3 Month Jan Jun NIBOR 3 Month Jan NIBOR 3 Month Mar Fixed Mar Fixed Jun NIBOR 3 Month Apr Feb NIBOR 3 Month Feb Jun Fixed Feb Mar NIBOR 3 Month Feb Nov Fixed Feb

33 Selected bonds Real estate (3) (12) ISIN Ticker Issuer Risk NO THOL41 PRO Thon Holding AS NO THOL42 PRO Thon Holding AS NO THOL52 PRO Thon Holding AS NO TRYGG_NOK NO V2 NO V3 NO V4 NO V5 NO V6 NO V7 NO V8 NO V1 NO V9 NO NO WPH1 PRO TryggHem Projekt 1 AB Vasakronan AB (publ) Vasakronan AB (publ) Vasakronan AB (publ) Vasakronan AB (publ) Vasakronan AB (publ) Vasakronan AB (publ) Vasakronan AB (publ) Vasakronan AB (publ) Vasakronan AB (publ) Vasakronan AB (publ) Wenaas Plaza Hotell AS Maturity Date TTM (yrs) Outstanding NOKm Coupon (%) Coupon type / Base rate Bid Ask date Mar NIBOR 3 Month Feb Mar Fixed Oct Jun NIBOR 3 Month Mar May Fixed N.A Jun Fixed Dec Jun NIBOR 3 Month Mar Mar ,1 1.4 NIBOR 3 Month Feb May Fixed Aug NIBOR 3 Month Feb Oct Fixed Nov Fixed Jan ,.9 NIBOR 3 Month Feb Jan Fixed Jan Apr NIBOR 3 Month Mar ,.9 NIBOR 3 Month Note: Data from 4 March Source: Bloomberg, Stamdata, Oslo Børs, Danske Bank Markets 33

34 Fixed Income Credit Research team Thomas Hovard Head of Credit Research hova@danskebank.com Henrik René Andresen Credit Portfolios hena@danskebank.com Gabriel Bergin Strategy, Financials gabe@danskebank.com Brian Børsting Industrials brbr@danskebank.com Bendik Engebretsen Industrials bee@danskebank.com Katrine Jensen Financials katri@danskebank.com Louis Landeman Industrials, Real Estate llan@danskebank.com Jakob Magnussen Utilities, Energy jakja@danskebank.com Jonas Meyer Shipping mey@danskebank.com August Moberg Industrials & Construction aumo@danskebank.com Niklas Ripa Credit Portfolios niri@danskebank.com Mads Rosendal Industrials, TMT madro@danskebank.com Haseeb Syed Industrials hsy@danskebank.com Find the latest Credit Research: : Danske Bank Markets: Bloomberg: DNSK<GO> 34

35 Disclosures This research report has been prepared by Danske Bank Markets, a division of Danske Bank A/S ('Danske Bank'). The authors of this research report are Haseeb Syed ( Analyst), Bendik Engebretsen (Analyst) and Jonas Meyer (Analyst). Analyst certification Each research analyst responsible for the content of this research report certifies that the views expressed in the research report accurately reflect the research analyst s personal view about the financial instruments and issuers covered by the research report. Each responsible research analyst further certifies that no part of the compensation of the research analyst was, is or will be, directly or indirectly, related to the specific recommendations expressed in the research report. Regulation Danske Bank is authorised and subject to regulation by the Danish Financial Supervisory Authority and is subject to the rules and regulation of the relevant regulators in all other jurisdictions where it conducts business. Danske Bank is subject to limited regulation by the Financial Conduct Authority and the Prudential Regulation Authority (UK). Details on the extent of the regulation by the Financial Conduct Authority and the Prudential Regulation Authority are available from Danske Bank on request. Danske Bank s research reports are prepared in accordance with the recommendations of the Danish Securities Dealers Association. Danske Bank is not registered as a Credit Rating Agency pursuant to the CRA Regulation (Regulation (EC) no. 16/29); hence, Danske Bank does not comply with nor seek to comply with the requirements applicable to Credit Rating Agencies. Conflicts of interest Danske Bank has established procedures to prevent conflicts of interest and to ensure the provision of high-quality research based on research objectivity and independence. These procedures are documented in Danske Bank s research policies. Employees within Danske Bank s Research Departments have been instructed that any request that might impair the objectivity and independence of research shall be referred to Research Management and the Compliance Department. Danske Bank s Research Departments are organised independently from and do not report to other business areas within Danske Bank. Research analysts are remunerated in part based on the overall profitability of Danske Bank, which includes investment banking revenues, but do not receive bonuses or other remuneration linked to specific corporate finance or debt capital transactions. Danske Bank, its affiliates and subsidiaries are engaged in commercial banking, securities underwriting, dealing, trading, brokerage, investment management, investment banking, custody and other financial services activities, may be a lender to the companies mentioned in this publication and have whatever rights are available to a creditor under applicable law and the applicable loan and credit agreements. At any time, Danske Bank, its affiliates and subsidiaries may have credit or other information regarding the companies mentioned in this publication that is not available to or may not be used by the personnel responsible for the preparation of this report, which might affect the analysis and opinions expressed in this research report. Danske Bank is a market maker and a liquidity provider and may hold positions in the financial instruments of the issuer(s) mentioned in this research report. 35

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