Fortum Clarifies Financing

Friday, December 12, 2003
The Board of Directors has decided to redeem the preference shares issued by Fortum Corporation's subsidiary, Fortum Capital Limited. The redemption will take place on December 30, 2003. The preference shares, worth EUR 1.2 billion, were issued in connection with the financing arrangements related to the acquisition of Stora Enso power assets in June 2000. Fortum will finance the redemption with debt. All of the preference shares have carried a fixed dividend of 6.7% per annum. The interest rate swap arrangements that Fortum simultaneously entered into has brought Fortum's effective cost of funding below the fixed rate dividend. The proceeds of the bond offering made by Fortum in early November with favourable market terms will be used for the redemption. As a result, a slightly lower level of financing costs will be achieved. The arrangement has been accounted for as a minority interest in Fortum Group's financial statements. In the consolidated income statement and balance sheet, the effect of this minority interest has been approximately EUR -80 million and EUR 1.2 billion respectively. These amounts will be replaced by approximately similar amounts in financial expenses and interest-bearing liabilities. The impact on the balance sheet will materialise as of the redemption date, and the impact on financial expenses as of 2004. Impact on the amount of net debt has already been taken into account in calculating the adjusted gearing ratio disclosed in the Interim Financial Statements. The redemption will improve the return of equity ratio, whereas the return of capital employed will remain unchanged. Fortum expects this transaction to have no effect on its credit ratings.
Maritime Reporter April 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Norwegian Car Carriers to Buy Two from Hyundai Samho

Oslo-listed Norwegian Car Carriers (NOCC) has signed a contract with Hyundai Samho Heavy Industries for the construction of two 6500 ceu Pure Car Truck Carrier (OCTCs).

Long Beach, Los Angeles ports host forum to gather input

More than 100 cargo owners, trucking firm leaders, longshore labor, marine terminals and other goods movement industry representatives turned out Wednesday for

Venezuela Probes ex-minister accused of corruption in Ferry Deals

A former minister in President Nicolas Maduro's government denied in an interview published on Friday accusations of corruption during the purchase of three

Vessels

IMO Calls for Environmentally Sound Ship Recycling in Bangladesh

The  International Maritime Organization (IMO) and the government of the People’s Republic of Bangladesh are jointly implementing a project entitled “Safe and

Zim Offers Asia-US east coast service via Suez

Israeli liner carrier Zim Integrated Shipping Services is launching a new service between Asia and the U.S. East Coast via the Suez Canal at the end of May.   The

BIMCO Welcomes EU Decision on Migrants

BIMCO has stated today that it appreciates the new efforts by EU leaders to reduce increasing reliance on merchant shipping to rescue the growing numbers of

 
 
Maritime Careers / Shipboard Positions Maritime Standards Offshore Oil Pipelines Port Authority Salvage Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1030 sec (10 req/sec)