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. 

Interest-bearing debt

USD mill  30.09.2017 30.09.2016  31.12.2016 
Non current interest-bearing debt  566  357   213 
Current interest-bearing debt  66      
Interest-bearing debt discontinued operations    1 441  1 320
Total interest-bearing debt  632   1 798  1 533 
Cash and cash equivalents   184  212   215 
Current financial investments  99  82  83

Cash and cash equivalents and current financial investments discontinued operations

   412  283
Net interst-bearing debt  348  1 097  953

Specification interest bearing debt

USD mill 30.09.2017 30.09.2016 31.12.2016
Bank loan   637   357  213
Interest-bearing debt discontinued operations     1 441  1 320 
Total interest-bearing debt  632  1 798  1 533 

Repayment schedule for interest-bearing debt

USD mill 30.09.2017 30.09.2016 31.12.2016
Due in 1 year  66  107  115
Due in 2 year   43  115  325
Due in 3 year   25  335  486
Due in 4 year   20  633  83
Due in 5 year and later    477  607  523
Total interst-bearing debt   632  1 798  1 533