Debt

Updated

The group (parent company and subsidiaries) funds its investments and operations mainly from the commercial bank loan market.

The group business activities are primarily financed over the balance sheet of the relevant subsidiary. Most loan agreements contain financial covenants in respect of the relevant borrowing company or group of companies. Financial covenants will normally include a mix of equity ratio, liquidity, current ratio and/or NIBD/EBITDA (net interest bearing debt / earning before interest, tax, depreciation and amortization).

Associates and other companies where the group has non-controlling interests, will have separate funding and covenant structures.

Further information on interest-bearing debt at year end is available in note 16 of the 2017 annual accounts (Annual report 2017). Information on interest-bearing debt on a quarterly basis is available in our quarterly reports.

Interest-bearing debt

USD mill  31.12.2017 31.12.2016 
Non current interest-bearing debt  493  213 
Current interest-bearing debt  108   
Interest-bearing debt discontinued operations    1 320
Total interest-bearing debt  601  1 533
Cash and cash equivalents   167  215 
Current financial investments  101  83

Cash and cash equivalents and current financial investments discontinued operations

   283
Net interst-bearing debt  333  953

Specification interest bearing debt

USD mill 31.12.2017 31.12.2016
Bank loan   601  213
Interest-bearing debt discontinued operations     1 320
Total interest-bearing debt  601  1 533

Repayment schedule for interest-bearing debt

USD mill 31.12.2017 31.12.2016
Due in 1 year  108  
Due in 2 year   25  34
Due in 3 year   22  180
Due in 4 year   22  
Due in 5 year and later    425  
Interest-bearing debt discontinued operations   1 320
Total interst-bearing debt   601  1 533