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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

VEB Guarantees $3 Bln of Yamal LNG Debt

Russian development bank VEB said on Friday it had provided a guarantee for $3 billion of debt to the Yamal liquefied natural gas (LNG) project, led by Russian gas firm Novatek.

US Oil Drillers Cut Rigs after 3 Weeks of Additions

U.S. oil drillers cut rigs this week for a 20th week this year after three weeks of additions, according to a closely followed report on Friday, as crude prices

World Stocks Tumble as Britain Votes for EU Exit

Global capital markets reeled on Friday after Britain voted to leave the European Union, with $2 trillion in value wiped from equity bourses worldwide, while money

Vessels

US Navy Accepts Delivery of Future USS Montgomery

The U.S. Navy has accepted delivery of future USS Montgomery (LCS 8) during a ceremony on June 23 at the Austal USA shipyard in Mobile, Ala.   Marking the official

Kiel is First German Port of Call for Mein Schiff 5

The brand-new TUI Cruises newbuilding Mein Schiff 5 has arrived in Kiel – her first German port of call since being handed over in Turku, Finland, a few days ago.

ST Marine Delivers 4th Patrol Vessel to Oman

Singapore Technologies Marine Ltd (ST Marine), the marine arm of Singapore Technologies Engineering Ltd (ST Engineering), has held the Interim Acceptance ceremony

 
 
Maritime Contracts Maritime Security Navigation Offshore Oil Pipelines Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
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: 0.0624 sec (16 req/sec)