Norwegian Bond Market

Transcription

1 Norwegian Bond Market Corporate Credit Report July 212 Lars Kirkeby Chief Analyst 31 July, 212

2 Spread to swap Yield NOKm Global number of defaults Nov-3 Nov-4 Nov-5 Nov-6 Nov Jan-6 Jul-6 Jan-7 Jul-7 Jan-8 Jul y BBB 5y BB 5y B Speculative grade defaults Speculative grade default rate 12% 1% 8% 6% 4% 2% % NOKm NOKm NOKm NOKm Number of corporate issuers Investment Grade High Yield AA A BBB BB B CCC Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec IT NOKm Investment Grade High Yield Market Update Page 3 Corporate Issuance Page 16 Shipping Page 22 Foods & Services Page 34 Primary Market Secondary Market Corporate Issuance Annual Volumes Indicative Price Levels Indicative Spread Levels Relative Value Indicative Price Levels Indicative Spread Levels Relative Value Credit Index Overview Page 5 Rating Distribution Page 17 Offshore Supply Page 24 Industrials Page 36 itraxx Crossover itraxx Europe Corporate Issuance Rating Distribution Indicative Price Levels Indicative Spread Levels Relative Value Indicative Price Levels Indicative Spread Levels Relative Value Credit Spread Overview Page 7 Monthly Issuance Page 18 Oil Services Page 26 Real Estate Page 38 Euro Industrial HY & IG spreads Corporate Issuance Monthly Levels Indicative Price Levels Indicative Spread Levels Relative Value Indicative Price Levels Indicative Spread Levels Relative Value Default Rates Page 9 Sector Issuance Page 19 Oil & Gas Page 28 Utilities Page 4 Default Rates Global Domestic Corporate Issuance Sector Distribution Indicative Price Levels Indicative Spread Levels Relative Value Indicative Price Levels Indicative Spread Levels Relative Value Utility Industrials Oil Service Drilling Oil & Gas Shipping Telecom Real Estate Consumer Other Top Corporate Issuers Page 11 Number of Issuers Page 2 High Yield Industrials Page 3 Maturity Distribution Page 44 BKK Posten Norge Hafslund Orkla MPU Offshore Lift Petrolia Drilling Master Marine Polarcus Statkraft Aker BioMarine Lyse Energi Roxar MPF Corp Statnett Bergen Oilfield Services IM Skaugen Villa Organic Viken Fibernett Marine Accurate Well FPS Ocean Norse Energy Corporation Fairstar Heavy Transport Estatia Resort IBB Byg Ziebel Top Corporate Issuers Corporate Issuance Number of issuers Indicative Price Levels Indicative Spread Levels Relative Value Corporate Bonds Maturity Distribution New Corporate Issues Page 13 Credit Coverage Page 21 Other High Yield Page 32 Rating Changes Page 45 New Corporate Issues Main Statistics 212 Nordea Markets Corporate Credit Coverage Overview Indicative Price Levels Indicative Spread Levels Relative Value Rating Changes Public Ratings Nordea Markets 2

3 Primary Market June & July 212 Norway-based Arendals Fossekompani issued a 5-year NOK 4m senior unsecured fixed rate bond with a coupon of 5.17%. Norway-based supply player Atlantic Offshore issued a 3-year NOK 2m senior unsecured FRN Nibor +1,bp. Norway-based industrial Borgestad issued a 3-year NOK 75m senior unsecured fixed rate bond with a coupon of 1.%. Norway-based oil & gas midget Crudecorp issued a 5-year NOK 21m senior unsecured FRN Nibor +1,25bp. Norway-based utility Eidsiva Energi issued a 7-year NOK 4m senior unsecured fixed rate bond with a coupon of 4.8%. Norway-based utility Energiselskapet Buskerud completed a NOK 45m senior unsecured bond offering, comprising a 3-year NOK 25m FRN Nibor +135bp and a 5-year NOK 2m FRN Nibor +175bp. Norway-based Nortura issued a 5-year NOK 4m senior unsecured FRN Nibor +27bp. Norway-based Fredensborg issued a 5-year NOK 1m FRN Nibor +5bp and a 5-year SEK 5m FRN Stibor +5bp. Norway-based Kistefos issued a 5-year NOK 35m senior unsecured FRN Nibor +95bp. Norway-based aluminium company Norsk Hydro issued a 7-year NOK 1,5m senior unsecured fixed rate bond with a coupon of 5.4%. Norway-based shipping company Ocean Yield issued a 5-year NOK 6m senior unsecured FRN Nibor +65bp. Norway-based real estate group Olav Thon issued a NOK 29m secured FRN with maturity in Oct 214 Nibor +1bp. Colombia-based oil & gas player Petrominerales issued a 5-year USD 4m unsecured fixed rate convertible with a coupon of 3.25%. Norway-based real estate outfit Skøyen Næringsbygg issued a 1-year NOK 55m fixed rate bond with a coupon of 5.5%. Norway-based infrastructure outfit Solveig Gas Norway issued a NOK 1,m fixed rate bond with maturity in Dec 227 and a coupon of 5.32%. Cyprus-based rig company Songa Offshore issued a 3-year NOK 75m senior unsecured FRN Nibor +775bp. Norway-based fish farmer Villa Organic issued a 5-year NOK 1m senior unsecured FRN Nibor +8bp. Norway-based state-owned real estate group Entra Eiendom added NOK 175m to its fixed rate bond with maturity in Nov swap +155bp and the bond amounts to NOK 5m after the tap. Norway-based utility Lyse Energi added NOK 111m to its fixed rate bond with maturity in Apr 222 and the bond amounts to NOK 211m after the tap. Source: Nordea Markets 3

4 NOKbn NOKbn Secondary Market Oslo Stock Exchange (OSE) Jun State Guaranteed Covered Bonds Municipality Senior Financials Subordinated Financials Industry Industry Aggregated secondary volume of listed bonds on OSE end-jun amounted to NOK 191.5bn NOK 181.2bn for the same period in 211 and NOK 346.8bn for the full-year 211 Aggregated secondary volume of listed corporate bonds on OSE end-jun amounted to NOK 33.bn NOK 35.6bn for the same period in 211 and NOK 59.5bn for the full-year 211 Total secondary volume of listed corporate bonds on OSE in Jun 212 amounted to NOK 4.7bn NOK 4.6bn in Jun 211 Source: Oslo Stock Exchange & Nordea Markets 4

5 Yield (bp) The itraxx 5-year Crossover Index 12 1 All-time high March 29 at 1,15bp 8 Collapse of Bear Stearns Sovereign debt entered the stage 6 Subprime entered the stage Index of 5 European high yield credit default swaps, including Norske Skog Average spread during Jul 212 was 629bp (Jun 212: 66bp), a 5% tightening from last month The international credit markets suffer from increasing risk aversion due to the impact from the never ending euro debt crisis Source: Reuters & Nordea Markets 5

6 Yield (bp) The itraxx 5-year Europe Index 25 2 All-time high Dec 217bp The Oct bp Index of 125 European investment grade credit default swaps, including Telenor Average spread during Jul 212 was 167bp (Jun 212: 176bp), a 5% tightening from last month The current low rate of global economic growth affects corporates in an adverse manner with increasing amount of profit warnings from non-financial companies Source: Reuters & Nordea Markets 6

7 Spread to swap High Yield Spreads (Euro Industrial) y BBB 5y BB 5y B During Jul 212 the average 5-year BB and 5-year B industrial credit spreads widened to 41bp and 689bp (Jun 212: 375bp and 662bp) respectively The domestic primary high yield market has been subdued since the Easter break, but we expect to see increased activity level during the second half of 212 Source: Nordea Markets 7

8 Spread to swap Investment Grade Spreads (Euro Industrial) y AA 5y A 5y BBB During Jul 212 the average 5-year A industrial credit spreads widened to 122bp (Jun 212: 118bp), while the 5-year BBB industrial credit spreads tightened to 166bp (Jun 212: 174bp) As we have seen before in Norway, the primary market for investment grade credits tend to pick up in periods with increasing risk aversion and we have seen several new deals during the summer months Source: Nordea Markets 8

9 Global number of defaults Global High Yield Default Rates % 25 1% 2 8% 15 6% 1 4% 5 2% % Speculative grade defaults Default rate (12-months rolling) The long-term ( ) average global high yield default rate amounts to 4.3% 4 public rated high yield issuers have defaulted so far in 212, affecting debt worth USD 44bn By comparison, 53 public rated high yield issuers defaulted in 211, affecting debt worth USD 88bn The 12-months trailing global high yield default rate increased to 2.4% in May 212 (Apr 212: 2.3%) Source: S&P & Nordea Markets 9

10 NOK bn Domestic Corporate Bond Default Rates % 16% 14% 12% 1% % 6% 4% 2% % Volume of corporate bond defaults Corporate default rate (12-months rolling) 1 corporate issuers have defaulted so far in 212, affecting debt worth NOK 3.9bn By comparison, three corporate issuers in Norway defaulted during 211, affecting debt worth NOK 4.5bn The annual high yield default rate ended at 3.7% in 211, jumping up from.9% in 21 The 12-months trailing corporate default rate declined to 3.3% in Jul 212 (Jun 212: 3.5%) Source: Stamdata & Nordea Markets 1

11 Largest Corporate Issuers 212 Source: Nordea Markets 11

12 NOKm Largest Corporate Issuers Njord Gas Infrastructure North Atlantic Drilling Source: Nordea Markets Ocean Rig BKK Stolt-Nielsen Limited Aker Drilling DNO International Fred Olsen Energy Songa Offshore Boa Group Renewable Energy Corporation Fjellinjen Jasper Offshore Polarcus Deep Sea Metro PA Resources DDI Holding DOF Subsea Østfold Energi Ship Finance International Stena Metall Dannemora Mineral Agder Energi Eiendomsspar NorgesGruppen Solstad Offshore

13 New Corporate Issues 212 (1/3) Ticker Issuer Corp Bond Sector Issue Maturity Coupon Size (m) Rank A.P. Møller - Mærsk A/S A- A- Industrials N3M +21 NOK 3 Senior Unsecured AKER7 Aker ASA BB BB Industrials N3M +5 NOK 5 Senior Unsecured AKER8 Aker ASA BB BB Industrials N3M +4 NOK 5 Senior Unsecured Aker Solutions ASA BBB- BBB- Oil Service N3M +425 NOK 1 5 Senior Unsecured Arendals Fossekompani ASA Utility % NOK 4 Senior Unsecured Atlantic Offshore AS Oil Service N3M +1 NOK 2 Senior Unsecured AUSS6 PRO Austevoll Seafood ASA BB BB- Industrials N3M +4 NOK 4 Senior Unsecured BKK AS BBB+ BBB+ Utility N3M +45 NOK 1 5 Senior Unsecured BKK14 BKK AS BBB+ BBB+ Utility N3M +83 NOK 1 5 Senior Unsecured BON4 Bonheur ASA Oil Service N3M +45 NOK 7 Senior Unsecured BON3 Bonheur ASA Oil Service N3M +5 NOK 3 Senior Unsecured BOR2 RET Borgestad ASA Industrials % NOK 75 Senior Unsecured BW Offshore Limited BB B+ Oil Service N3M +425 NOK 5 Senior Unsecured BWG1 BWG Homes ASA Real Estate N3M +45 NOK 3 Senior Unsecured Crudecorp AS Oil & Gas N3M +125 NOK 21 Senior Unsecured Deep Drilling 7 & 8 Pte Ltd Drilling % USD 24 Senior Unsecured DFDS1 DFDS A/S BBB- BB+ Shipping N3M +35 NOK 5 Senior Unsecured DOF9 DOF ASA B+ B- Oil Service N3M +725 NOK 7 Senior Unsecured DOF Subsea AS B+ B- Oil Service N3M +625 NOK 7 Senior Unsecured Eidsiva Energi AS A- A- Utility % NOK 4 Senior Unsecured Emerging Europe Land Development AS Real Estate % NOK 83 1st Priority Pledge Energiselskapet Buskerud AS BBB+ BBB+ Utility N3M +135 NOK 25 Senior Unsecured Energiselskapet Buskerud AS BBB+ BBB+ Utility N3M +175 NOK 2 Senior Unsecured ENEID55 Entra Eiendom AS A- A- Real Estate N3M +125 NOK 35 Senior Unsecured FAR3 Farstad Shipping ASA BB B+ Oil Service N3M +42 NOK 4 Senior Unsecured Fredensborg AS Real Estate N3M +55 NOK 1 Senior Unsecured Fredensborg AS Real Estate S3M +55 SEK 5 Senior Unsecured Golar LNG Ltd Shipping % USD 25 Secured Convertible HNA19 Hafslund ASA BBB+ BBB+ Utility % NOK 3 Senior Unsecured HRG1 Hurtigruten ASA B+ B- F&S N3M +7 NOK 5 Senior Unsecured I.M. Skaugen SE B CCC+ Shipping N3M +825 NOK 4 Senior Unsecured I.M. Skaugen SE B CCC+ Shipping N3M +9 NOK 35 Senior Unsecured Kistefos AS Industrials N3M +95 NOK 35 Senior Unsecured KOLL4 PRO Kollektivtransportproduksjon AS F&S N3M +1 NOK 1 Senior Unsecured Lyse Energi AS BBB+ BBB+ Utility N3M +15 NOK 3 Senior Unsecured Source: Stamdata, Nordea Markets & Nordea Markets Ratings 13

14 New Corporate Issues 212 (2/3) Ticker Issuer Corp Bond Sector Issue Maturity Coupon Size (m) Rank Lyse Energi AS BBB+ BBB+ Utility % NOK 1 Senior Unsecured Mosking Bolig AS Real Estate % NOK 7 1st Priority Pledge Niam Fund V Kjøpesenter I Holding AS Real Estate Adjust NOK 1 5 1st Priority Pledge Norges Statsbaner AS AA AA F&S % NOK 1 15 Senior Unsecured Norges Statsbaner AS AA AA F&S % NOK 35 Senior Unsecured Norsk Hydro ASA Industrials % NOK 1 5 Senior Unsecured NORES1 Northland Resources AB Industrials % NOK 46 1st Priority Pledge NORES2 Northland Resources AB Industrials % USD 27 1st Priority Pledge NORT3 PRO Nortura SA BBB BBB F&S N3M +27 NOK 4 Senior Unsecured Norwegian Air Shuttle ASA B+ B F&S N3M +55 NOK 6 Senior Unsecured Ocean Yield AS Shipping N3M +65 NOK 6 Senior Unsecured ODF4 Odfjell SE B+ B- Shipping N3M +575 NOK 6 Senior Unsecured OLT33 Olav Thon Eiendomsselskap ASA BBB+ A- Real Estate % NOK 35 1st Priority Pledge Olav Thon Eiendomsselskap ASA BBB+ A- Real Estate N3M +1 NOK 29 1st Priority Pledge OSX 3 Leasing BV Oil Service % USD 5 1st Priority Pledge Pacific Drilling SA Drilling % USD 3 Senior Unsecured Petrominerales Ltd Oil & Gas % USD 4 Unsecured Convertible PRS8 Prosafe SE BB+ BB- Oil Service N3M +375 NOK 5 Senior Unsecured SCH3 Schibsted ASA BBB BBB Industrials N3M +215 NOK 5 Senior Unsecured SCH4 Schibsted ASA BBB BBB Industrials % NOK 3 Senior Unsecured Seadrill Ltd BB+ BB- Drilling N3M +325 NOK 1 25 Senior Unsecured SELV3 PRO Selvaag Gruppen AS BB- B+ Real Estate N3M +425 NOK 2 Senior Unsecured SinOceanic II AS Shipping % USD 1 1st Priority Pledge Skøyen Næringsbygg AS Real Estate % NOK 55 1st Priority Pledge SFEN28 PRO Sogn og Fjordane Energi AS BBB BBB Utility N3M +88 NOK 15 Senior Unsecured Solveig Gas Norway AS Industrials % NOK 1 Senior Unsecured Songa Offshore SE B+ B Drilling N6M +775 NOK 75 Senior Unsecured STANE36 Statnett SF A+ A+ Utility % NOK 1 Senior Unsecured SFR2 Statoil Fuel & Retail ASA BBB+ BBB+ F&S N3M +175 NOK 1 1 Senior Unsecured SFR1 Statoil Fuel & Retail ASA BBB+ BBB+ F&S % NOK 4 Senior Unsecured SNI2 Stolt-Nielsen Limited BB+ BB- Shipping N3M +375 NOK 4 Senior Unsecured SNI3 Stolt-Nielsen Limited BB+ BB- Shipping N3M +475 NOK 6 Senior Unsecured Teekay LNG Partners LP Shipping N3M +525 NOK 7 Senior Unsecured Teekay Offshore Partners LP BB B+ Oil Service N3M +575 NOK 6 Senior Unsecured Tele2 AB Telecom N3M +17 NOK 3 Senior Unsecured Source: Stamdata, Nordea Markets & Nordea Markets Ratings 14

15 New Corporate Issues 212 (3/3) Ticker Issuer Corp Bond Sector Issue Maturity Coupon Size (m) Rank Tele2 AB Telecom N3M +235 NOK 1 Senior Unsecured THOL12 PRO Thon Holding AS BBB BBB+ Real Estate N3M +15 NOK 35 Senior Unsecured Transeuro Energy Corp Oil & Gas % NOK 6 Secured Convertible VSS1 PRO Viking Supply Ships A/S Oil Service N3M +775 NOK 3 Senior Unsecured Villa Organic AS Industrials N3M +8 NOK 1 Senior Unsecured Source: Stamdata, Nordea Markets & Nordea Markets Ratings 15

16 NOKm Corporate Issues and Taps Investment Grade High Yield The statistics include all bond issuance by corporates, including convertibles and taps Total issuance year-to-date amounts to NOK 51.5bn, compared to NOK 38.5bn for the same period in 211 and NOK 45.8bn for the full-year 211 The high yield rating classes account for 53% of total corporate issuance so far in 212 (full-year 211: 68%) Source: Stamdata & Nordea Markets 16

17 NOKm Rating Distribution Corporate Issues and Taps AA A BBB BB B CCC Total domestic high yield issuance year-to-date 212 amounts to approximately NOK 27.4bn, compared to approximately NOK 31.2bn for the full-year 211 So far in 212, a total of 39 high yield issuers have been active in the primary market A total of 42 high yield issuers were active in the primary market during 211 Source: Nordea Markets 17

18 NOKm Monthly Volume Corporate Issues and Taps Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total corporate issuance in Jul 212 amounted to NOK 5.4bn, compared to NOK 1.2bn in Jul 211 Top 3 list of monthly volume of corporate issuance in Norway: Feb 212: NOK 14.1bn, Mar 212: NOK 13.8bn and May 27: NOK 13.7bn Source: Stamdata & Nordea Markets 18

19 NOKm Sector Distribution Corporate Issues and Taps Industrials Oil Service Utility Shipping Drilling Real Estate Foods & Services Oil & Gas Telecom IT Strengthened market conditions for high yield credits during the first three months of 212 led to increased activity in the typical high yield sectors in Norway (shipping, oil & gas and oil service) Total bond issuance in the shipping, oil & gas and oil service sectors amount to approximately 45% of the aggregated corporate bond issuance so far in 212 (full-year 211: 59%) Source: Nordea Markets 19

20 Number of corporate issuers Number of Corporate Issuers The variety of corporate issuers, and hence credit quality, exploded during 26 and 27 Record-high number of corporate issuers in 27, when 114 corporate issuers were active in the market At year-end 211, there were 175 corporate issuers with outstanding bond debt in the Norwegian market 64 corporate issuers have been in the market so far in 212, of which 23 are new to the market Source: Nordea Markets 2

21 Nordea Markets Corporate Credit Coverage Shipping Corp Bond Foods & Services Corp Bond Real Estate Corp Bond Belships ASA B- CCC Avinor AS A A- Entra Eiendom AS A- A- Color Group AS BB+ BB- Felleskjøpet Agri SA BBB- BBB- Norwegian Property ASA BBB- BB+ DFDS A/S BBB- BB+ Fjellinjen AS AA AA Olav Thon Eiendomsselskap ASA BBB+ BBB Eitzen Chemical ASA CCC CC+ Hurtigruten ASA B+ B- Selvaag Gruppen AS BB- B+ I.M. Skaugen SE B CCC+ Norges Statsbaner AS AA AA Steen & Strøm ASA BBB+ BBB J. Lauritzen A/S B+ B- NorgesGruppen ASA A- A- Thon Holding AS BBB BBB- Norwegian Car Carriers ASA B CCC+ Nortura SA BBB BBB Odfjell SE B+ B- Norwegian Air Shuttle ASA B+ B Utilities Corp Bond Stolt-Nielsen Limited BB+ BB- Posten Norge AS A A Agder Energi AS A- A- Wilh. Wilhelmsen ASA BBB- BB+ Rieber & Søn ASA BBB+ BBB+ Akershus Energi AS A- A- Statoil Fuel & Retail ASA BBB+ BBB+ BKK AS BBB+ BBB+ Offshore Supply Corp Bond TINE SA A- A- E-CO Energi AS A- A- DOF ASA B+ B- Eidsiva Energi AS A- A- DOF Subsea AS B+ B- Industrials Corp Bond Energiselskapet Buskerud AS BBB+ BBB+ Farstad Shipping ASA BB B+ A.P. Møller - Mærsk A/S A- A- Fredrikstad Energi AS BBB- BBB- Havila Shipping ASA B CCC+ Austevoll Seafood ASA BB BB- Hafslund ASA BBB+ BBB+ Olympic Ship AS BB- B Eitzen Maritime Services ASA CC CC HelgelandsKraft AS BBB+ BBB+ Rem Offshore ASA B+ B- Kongsberg Gruppen ASA BBB+ BBB+ Lyse Energi AS BBB+ BBB+ Solstad Offshore ASA B+ B- Kverneland ASA B B Sogn og Fjordane Energi AS BBB BBB Norsk Hydro ASA BBB BBB Statkraft AS A- A- Offshore Drilling Corp Bond Norske Skogindustrier ASA B- B- Statnett SF A+ A+ Fred Olsen Energy ASA BB BB- Orkla ASA BBB+ BBB+ Sunnhordland Kraftlag AS BBB+ BBB+ Ocean Rig UDW Inc. B+ B Renewable Energy Corporation ASA BB BB Tafjord Kraft AS BBB BBB Seadrill Ltd BB+ BB- STX Europe AS B+ B- Troms Kraft AS BBB- BBB- Songa Offshore SE B+ B Yara International ASA BBB BBB TrønderEnergi AS BBB+ BBB+ Tussa Kraft AS BBB- BBB- Oil Service Corp Bond IT, Media & Telecom Corp Bond Vardar AS BB+ BB+ Aker ASA BB BB Blom ASA CCC+ CCC Østfold Energi AS BBB+ BBB+ Aker Solutions ASA BBB- BBB- EDB ErgoGroup ASA BB+ BB+ BW Offshore Ltd BB B+ Schibsted ASA BBB BBB Prosafe SE BB+ BB- Telenor ASA A- A- Teekay Offshore Partners LP BB B+ Oil & Gas Corp Bond Noreco ASA B- CCC Statoil ASA AA AA Note: The bond rating refer to unsecured debt, the rating on bond issues with mortgage may deviate Source: Nordea Markets & Nordea Markets Ratings 21

22 Shipping Indicative Price and Spread Levels Ticker Issuer Company Bond Coupon Maturity Price Spread 1mth 3mth Size (m) Rank BEL1 Belships ASA B- CCC N3M NOK 75 Senior unsecured COLG4 Color Group AS BB+ BB- N3M NOK 3 Senior unsecured COLG5 Color Group AS BB+ BB- N3M NOK 5 Senior unsecured COLG7 PRO Color Group AS BB+ BB- N3M NOK 5 Senior unsecured COLG8 PRO Color Group AS BB+ BB- N3M NOK 9 Senior unsecured COLG9 PRO Color Group AS BB+ BB- N3M NOK 5 Senior unsecured DFDS1 DFDS A/S BBB- BB+ N3M NOK 5 Senior unsecured ECHEM1 Eitzen Chemical ASA CCC CC+ L3M USD 25 Senior unsecured ECHEM2 Eitzen Chemical ASA CCC CC+ N3M NOK 49 Senior unsecured IMSK9 PRO I.M. Skaugen SE B CCC+ N3M NOK 15 Senior unsecured IMSK1 I.M. Skaugen SE B CCC+ N3M NOK 35 Senior unsecured IMSK11 PRO I.M. Skaugen SE B CCC+ N3M NOK 75 Senior unsecured IMSK 2/15 I.M. Skaugen SE B CCC+ N3M NOK 4 Senior unsecured IMSK 4/17 I.M. Skaugen SE B CCC+ N3M NOK 35 Senior unsecured JLA1 J. Lauritzen A/S B+ B- 1.5 % NOK 7 Senior unsecured NOCC1 Norwegian Car Carriers ASA B CCC+ 1.5 % NOK 225 Senior unsecured ODF3 Odfjell SE B+ B- N3M NOK 5 Senior unsecured ODF4 Odfjell SE B+ B- N3M NOK 6 Senior unsecured SNI2 Stolt-Nielsen Limited BB+ BB- N3M NOK 4 Senior unsecured SNI1 Stolt-Nielsen Limited BB+ BB- N3M NOK 1 6 Senior unsecured SNI3 Stolt-Nielsen Limited BB+ BB- N3M NOK 6 Senior unsecured WWI13 Wilh. Wilhelmsen ASA BBB- BB+ N3M NOK 26 Senior unsecured WWI7 Wilh. Wilhelmsen ASA BBB- BB+ N3M NOK 6 Senior unsecured WWI15 Wilh. Wilhelmsen ASA BBB- BB+ N3M NOK 7 Senior unsecured WWI21 PRO Wilh. Wilhelmsen ASA BBB- BB+ 9. % NOK 6 Senior unsecured WWI9 Wilh. Wilhelmsen ASA BBB- BB+ N3M NOK 3 Senior unsecured WWI19 PRO Wilh. Wilhelmsen ASA BBB- BB+ N3M NOK 3 Senior unsecured Source: Nordea Markets & Nordea Markets Ratings 22

23 Spread to swap Shipping Relative Value Comparison BEL1 B-/CCC NOCC1 B/CCC+ IMSK 2/15 B/CCC+ IMSK 4/17 B/CCC+ 6 4 JLA1 B+/B- IMSK1 B/CCC+ ODF4 B+/B- COLG9 PRO BB+/BB- COLG8 PRO BB+/BB- SNI3 BB+/BB- ODF3 B+/B- SNI1 BB+/BB- WWI15 BBB-/BB+ COLG7 PRO BB+/BB- WWI9 BBB-/BB+ SNI2 BB+/BB- DFDS1 BBB-/BB+ B BB 2 WWI7 BBB-/BB+ BBB Maturity 23 Source: Nordea Markets & Nordea Markets Ratings Euribor Industrial Rating Curves

24 Offshore Supply Indicative Price and Spread Levels Ticker Issuer Company Bond Coupon Maturity Price Spread 1mth 3mth Size (m) Rank BOA1 RET Boa OCV AS N3M NOK st priority pledge DOF7 DOF ASA B+ B- N3M NOK 95 Senior unsecured DOF8 DOF ASA B+ B- N3M NOK 6 Senior unsecured DOF9 DOF ASA B+ B- N3M NOK 7 Senior unsecured DOFSUB4 DOF Subsea AS B+ B- N3M NOK 75 Senior unsecured DOFSUB6 DOF Subsea AS B+ B- N3M NOK 7 Senior unsecured DOFSUB5 DOF Subsea AS B+ B- N3M NOK 75 Senior unsecured FAR2 PRO Farstad Shipping ASA BB B+ N3M NOK 4 Senior unsecured FAR3 Farstad Shipping ASA BB B+ N3M NOK 4 Senior unsecured HAVI3 PRO Havila Shipping ASA B CCC+ N3M NOK 5 Senior unsecured HAVI5 PRO Havila Shipping ASA B CCC+ N3M NOK 3 Senior unsecured HAVI4 Havila Shipping ASA B B N3M NOK 218 1st priority pledge HAVI6 Havila Shipping ASA B B 8.6 % NOK 296 1st priority pledge HAVI7 Havila Shipping ASA B B N3M NOK 296 1st priority pledge OLSH1 PRO Olympic Ship AS BB- B N6M NOK 25 Senior unsecured REM2 PRO Rem Offshore ASA B+ B- N3M NOK 4 Senior unsecured SOFF2 PRO Solstad Offshore ASA B+ B- N3M NOK 7 Senior unsecured SOFF3 Solstad Offshore ASA B+ B- N3M NOK 7 Senior unsecured VSS1 PRO Viking Supply Ships A/S N3M NOK 3 Senior unsecured Source: Nordea Markets & Nordea Markets Ratings 24

25 Spread to swap Offshore Supply Relative Value Comparison HAVI3 PRO B/CCC+ HAVI5 PRO B/CCC+ VSS1 PRO DOF9 B+/B- 7 DOF8 B+/B- DOFSUB5 B+/B- HAVI7 B/B B 6 OLSH1 PRO BB-/B DOFSUB4 B+/B- HAVI4 B/B 5 REM2 PRO B+/B- SOFF3 B+/B- 4 BOA1 RET BB 3 FAR2 PRO BB/B+ FAR3 BB/B+ 2 BBB Maturity 25 Source: Nordea Markets & Nordea Markets Ratings Euribor Industrial Rating Curves

26 Oil Service Indicative Price and Spread Levels Ticker Issuer Company Bond Coupon Maturity Price Spread 1mth 3mth Size (m) Rank AKD3 Transocean Norway Drilling AS N3M NOK 94 Senior unsecured AKD4 Transocean Norway Drilling AS 11. % NOK 56 Senior unsecured BLH1 Bluewater Holding BV L3M USD 36 Senior unsecured BON2 Bonheur ASA N3M NOK 6 Senior unsecured BON1 Bonheur ASA N3M NOK 1 Senior unsecured BON4 Bonheur ASA N3M NOK 7 Senior unsecured BON3 Bonheur ASA N3M NOK 3 Senior unsecured BWO 3/17 BW Offshore Limited BB B+ N3M NOK 5 Senior unsecured DEED1 RET Deep Drilling 1 Pte Ltd 12. % USD 125 1st priority pledge EMGS1 Electromagnetic Geoservices ASA N3M NOK 25 Senior unsecured FAIR1 Fairstar Heavy Transport NV N3M NOK 3 Senior unsecured FOE4 Fred Olsen Energy ASA BB BB- N3M NOK 1 4 Senior unsecured OCR1 PRO Ocean Rig UDW Inc B+ B 9.5 % USD 5 Senior unsecured OPU1 PRO Oceanteam Shipping ASA N3M NOK 4 Senior unsecured PDR4 PRO Petrolia ASA 12. % NOK 345 Senior unsecured PLCS1 Polarcus Ltd 14. % NOK 23 Senior unsecured PRS6 PRO Prosafe SE BB+ BB- N3M NOK 5 Senior unsecured PRS7 Prosafe SE BB+ BB- N3M NOK 5 Senior unsecured PRS8 Prosafe SE BB+ BB- N3M NOK 5 Senior unsecured SME5 Seadrill Ltd BB+ BB- N3M NOK 5 Senior unsecured SDRL 2/14 Seadrill Ltd BB+ BB- N3M NOK 1 25 Senior unsecured SDRL5 Seadrill Ltd BB+ BB- 6.5 % USD 35 Senior unsecured SFLN1 PRO Ship Finance International Ltd N3M NOK 5 Senior unsecured SONG 6/15 Songa Offshore SE B+ B N6M NOK 75 Senior unsecured SONG4 Songa Offshore SE B+ B N6M NOK 1 4 Senior unsecured TOP1 Teekay Offshore Partners LP BB B+ N3M NOK 6 Senior unsecured TOP 1/17 Teekay Offshore Partners LP BB B+ N3M NOK 6 Senior unsecured Source: Nordea Markets & Nordea Markets Ratings 26

27 Spread to swap Oil Service Relative Value Comparison 12 1 BLH1 PLCS1 OCR1 PRO B+/B 8 SONG4 B+/B SONG 6/15 B+/B 6 SFLN1 PRO EMGS1 SDRL5 BB+/BB- TOP 1/17 BB/B+ FAIR1 AKD3 BON4 BON3 B 4 TOP1 BB/B+ FOE4 BB/BB- BON1 BWO 3/17 BBB+ PRS8 BB+/BB- BB 2 SDRL 2/14 BB+/BB- PRS6 PRO BB+/BB- PRS7 BB+/BB- BBB Maturity 27 Source: Nordea Markets & Nordea Markets Ratings Euribor Industrial Rating Curves

28 Oil & Gas Indicative Price and Spread Levels Ticker Issuer Company Bond Coupon Maturity Price Spread 1mth 3mth Size (m) Rank DETNOR1 Det Norske Oljeselskap ASA N3M NOK 6 Senior unsecured DNO6 DNO International ASA N3M NOK 18 Senior unsecured DNO7 DNO International ASA 7.215% NOK 53 Senior unsecured DNO11 PRO DNO International ASA 6.45 % USD 1 Senior unsecured DNO13 DNO International ASA L3M USD 14 Senior unsecured DNO14 DNO International ASA N3M NOK 56 Senior unsecured NOR3 Norwegian Energy Company ASA B- CCC+ N3M NOK 75 1st priority pledge NOR5 Norwegian Energy Company ASA B- CCC+ N3M NOK 7 Senior unsecured NOR4 Norwegian Energy Company ASA B- CCC % NOK st priority pledge NOR6 Norwegian Energy Company ASA B- B % NOK 275 1st priority pledge NOR7 Norwegian Energy Company ASA B- B- N3M NOK 325 1st priority pledge Source: Nordea Markets & Nordea Markets Ratings 28

29 Spread to swap Oil & Gas Relative Value Comparison NOR4 B-/CCC NOR5 B-/CCC+ DNO NOR3 B-/CCC+ NOR7 B-/B- DETNOR1 B 4 BB 2 DNO6 BBB Maturity 29 Source: Nordea Markets & Nordea Markets Ratings Euribor Industrial Rating Curves

30 High Yield Industrials Indicative Price and Spread Levels Ticker Issuer Company Bond Coupon Maturity Price Spread 1mth 3mth Size (m) Rank AKER4 Aker ASA BB BB N3M NOK 5 Senior unsecured AKER5 Aker ASA BB BB N3M NOK 85 Senior unsecured AKER6 Aker ASA BB BB 8.38 % NOK 15 Senior unsecured AKER8 Aker ASA BB BB N3M NOK 5 Senior unsecured AKER7 Aker ASA BB BB N3M NOK 5 Senior unsecured AKVER3 Aker Solutions ASA BBB- BBB- N3M NOK 3 Senior unsecured AKVER4 Aker Solutions ASA BBB- BBB- 6. % NOK 15 Senior unsecured AKVER5 Aker Solutions ASA BBB- BBB- N3M NOK 187 Senior unsecured AKVER6 Aker Solutions ASA BBB- BBB- 9.7 % NOK Senior unsecured AKSO 6/17 Aker Solutions ASA BBB- BBB- N3M NOK 1 5 Senior unsecured BERGEN1 Bergen Group ASA N3M NOK 33 Senior unsecured NSG17 Norske Skogindustrier ASA B- B % NOK 53 Senior unsecured NSG18 Norske Skogindustrier ASA B- B- N3M NOK 22 Senior unsecured NSG15 Norske Skogindustrier ASA B- B- 5.4 % NOK 3 Senior unsecured NORES1 Northland Resources AB 13. % NOK 46 1st priority pledge NORES2 Northland Resources AB 13. % USD 27 1st priority pledge REC1 Renewable Energy Corporation ASA BB BB 11. % NOK 1 25 Senior unsecured REC2 Renewable Energy Corporation ASA BB BB N3M NOK 5 Senior unsecured REC3 Renewable Energy Corporation ASA BB BB 9.75 % NOK 7 Senior unsecured AKY3 STX Europe AS B+ B % NOK 145 Senior unsecured AKY4 STX Europe AS B+ B- N3M NOK 48 Senior unsecured Note: Aker Solution s 214 bonds (AKVER5 and AKVER6) include margin step-up clauses, which are triggered by a downgrade to non-investment grade by Fitch Source: Nordea Markets & Nordea Markets Ratings 3

31 Spread to swap High Yield Industrials Relative Value Comparison NSG17 B-/B- 14 NORES2 12 REC2 BB/BB REC3 BB/BB 1 REC1 BB/BB 8 BERGEN1 B 6 4 AKY4 B+/B- AKSO 6/17 BBB-/BBB- AKER5 BB/BB AKER7 BB/BB BB 2 AKVER6 BBB-/BBB- AKER8 BB/BB BBB Maturity 31 Source: Nordea Markets & Nordea Markets Ratings Euribor Industrial Rating Curves

32 Other High Yield Indicative Price and Spread Levels Ticker Issuer Company Bond Coupon Maturity Price Spread 1mth 3mth Size (m) Rank AKBM1 PRO Aker BioMarine ASA N3M NOK 35 Senior unsecured AUSS5 PRO Austevoll Seafood ASA BB BB- N3M NOK 5 Senior unsecured AUSS6 PRO Austevoll Seafood ASA BB BB- N3M NOK 4 Senior unsecured BWG1 BWG Homes ASA N3M NOK 3 Senior unsecured DMABB1 PRO Dannemora Mineral AB % USD 12 1st priority pledge ELT1 PRO Eltek ASA N3M NOK 2 Senior unsecured HRG1 Hurtigruten ASA B+ B- N3M NOK 5 Senior unsecured KGLED1 Kungsleden AB N3M NOK 325 Senior unsecured MORP1 Morpol ASA N3M NOK 5 Senior unsecured SELV3 PRO Selvaag Gruppen AS BB- B+ N3M NOK 2 Senior unsecured SMF1 PRO Stena Metall Finans AB N3M NOK 75 Senior unsecured Source: Nordea Markets & Nordea Markets Ratings 32

33 Spread to swap Other High Yield Relative Value Comparison 9 8 ELT1 PRO 7 HRG1 B+/B- B 6 MORP1 5 4 SELV3 PRO BB-/B+ KGLED1 AUSS6 PRO BB/BB- BB 3 AKBM1 PRO AUSS5 PRO BB/BB- SMF1 PRO 2 BBB Maturity 33 Source: Nordea Markets & Nordea Markets Ratings Euribor Industrial Rating Curves

34 Foods & Services Indicative Price and Spread Levels Ticker Issuer Company Bond Coupon Maturity Price Spread 1mth 3mth Size (m) Rank AVINOR2 Avinor AS A A % NOK 85 Senior unsecured AVINOR3 Avinor AS A A % NOK 4 Senior unsecured DSB3 PRO DSB 6.2 % NOK 31 Senior unsecured FKOV6 PRO Felleskjøpet Agri SA BBB- BBB- N3M NOK 4 Senior unsecured FJELL 12/14 Fjellinjen AS AA AA N3M NOK 5 Senior unsecured FJELL1 PRO Fjellinjen AS AA AA N3M NOK 7 Senior unsecured FJELL2 PRO Fjellinjen AS AA AA 4.4 % NOK 3 Senior unsecured NSB 4/14 Norges Statsbaner AS AA AA N3M NOK 28 Senior unsecured NSB 1/14 Norges Statsbaner AS AA AA 4.6 % NOK 27 Senior unsecured NSB 4/16 Norges Statsbaner AS AA AA 4.94 % NOK 55 Senior unsecured NORG4 NorgesGruppen ASA A- A- N3M NOK 75 Senior unsecured NORG2 NorgesGruppen ASA A- A- N3M NOK 7 Senior unsecured NORG37 NorgesGruppen ASA A- A- N3M NOK 7 Senior unsecured NORT1 PRO Nortura SA BBB BBB N3M NOK 5 Senior unsecured NORT2 PRO Nortura SA BBB BBB 6.94 % NOK 5 Senior unsecured NORT3 PRO Nortura SA BBB BBB N3M NOK 4 Senior unsecured POSTEN3 Posten Norge AS A A N3M NOK 5 Senior unsecured RIE4 PRO Rieber & Søn ASA BBB+ BBB+ N3M NOK 2 Senior unsecured SFR2 Statoil Fuel & Retail ASA BBB+ BBB+ N3M NOK 1 1 Senior unsecured SFR1 Statoil Fuel & Retail ASA BBB+ BBB % NOK 4 Senior unsecured TEL3 Telenor ASA A- A- 7.4 % NOK 753 Senior unsecured TEL2 Telenor ASA A- A % NOK 4 Senior unsecured TINE3 PRO TINE SA A- A- 6.5 % NOK 5 Senior unsecured TINE4 PRO TINE SA A- A- N3M NOK 38 Senior unsecured Source: Nordea Markets & Nordea Markets Ratings 34

35 Spread to swap Foods & Services Relative Value Comparison 3 NORT3 PRO BBB/BBB 25 SFR1 BBB+/BBB+ 2 DSB3 PRO BBB SFR2 BBB+/BBB+ 15 FKOV6 PRO BBB-/BBB- NORG4 A-/A- 1 TINE4 PRO A-/A- AVINOR2 A/A- NSB 4/14 AA/AA 5 POSTEN3 A/A NORG37 A-/A- NORG2 A-/A- NSB 4/16 AA/AA FJELL2 PRO AA/AA FJELL1 AVINOR3 PRO A/A- AA/AA FJELL 12/14 AA/AA A AA TEL2 A-/A Maturity 35 Source: Nordea Markets & Nordea Markets Ratings Euribor Industrial Rating Curves

36 Industrials Indicative Price and Spread Levels Ticker Issuer Company Bond Coupon Maturity Price Spread 1mth 3mth Size (m) Rank MAERSK 12/14 A.P. Møller - Mærsk A/S A- A- N3M NOK 2 Senior unsecured MAERSK 12/16 A.P. Møller - Mærsk A/S A- A % NOK 2 Senior unsecured MAERSK 3/17 A.P. Møller - Mærsk A/S A- A- N3M NOK 3 Senior unsecured KOG5 Kongsberg Gruppen ASA BBB+ BBB+ N3M NOK 5 Senior unsecured ORK3 Orkla ASA BBB+ BBB % NOK 1 5 Senior unsecured ELK18 Orkla ASA BBB+ BBB+ N3M NOK 4 Senior unsecured ORK78 Orkla ASA BBB+ BBB % NOK 1 25 Senior unsecured ORK79 Orkla ASA BBB+ BBB+ N3M NOK 4 Senior unsecured ORK9 Orkla ASA BBB+ BBB+ N6M NOK 1 3 Senior unsecured ORK1 Orkla ASA BBB+ BBB+ 5.7 % NOK 1 2 Senior unsecured SCH2 Schibsted ASA BBB BBB N3M NOK 3 Senior unsecured SCH1 Schibsted ASA BBB BBB N3M NOK 4 Senior unsecured SCH3 Schibsted ASA BBB BBB N3M NOK 5 Senior unsecured SCH4 Schibsted ASA BBB BBB 5.9 % NOK 3 Senior unsecured YAR3 Yara International ASA BBB BBB 7.4 % NOK 325 Senior unsecured YAR4 Yara International ASA BBB BBB N3M NOK 3 Senior unsecured YAR5 Yara International ASA BBB BBB 8.8 % NOK 1 Senior unsecured Source: Nordea Markets & Nordea Markets Ratings 36

37 Spread to swap Industrials Relative Value Comparison 3 25 SCH4 BBB/BBB 2 SCH3 BBB/BBB MAERSK 3/17 A-/A- MAERSK 12/16 A-/A- SCH1 BBB/BBB BBB 15 1 MAERSK 12/14 A-/A- SCH2 BBB/BBB ORK9 BBB+/BBB+ YAR5 BBB/BBB KOG5 BBB+/BBB+ ORK78 BBB+/BBB+ YAR4 BBB/BBB A AA Maturity 37 Source: Nordea Markets & Nordea Markets Ratings Euribor Industrial Rating Curves

38 Real Estate Indicative Price and Spread Levels Ticker Issuer Company Bond Coupon Maturity Price Spread 1mth 3mth Size (m) Rank ENEID28 Entra Eiendom AS A- A- N3M NOK 45 Senior unsecured ENEID3 Entra Eiendom AS A- A % NOK 975 Senior unsecured ENEID55 Entra Eiendom AS A- A- N3M NOK 65 Senior unsecured ENEID41 Entra Eiendom AS A- A- 4.7 % NOK 5 Senior unsecured ENEID29 Entra Eiendom AS A- A % NOK 5 Senior unsecured OLT 1/14 Olav Thon Eiendomsselskap ASA BBB+ A- N3M NOK 29 1st priority pledge OLT1 Olav Thon Eiendomsselskap ASA BBB+ A- 4.9 % NOK 25 1st priority pledge OLT16 Olav Thon Eiendomsselskap ASA BBB+ A- N3M NOK 6 1st priority pledge OLT33 Olav Thon Eiendomsselskap ASA BBB+ A- 4. % NOK 35 1st priority pledge SST18 Steen & Strøm ASA BBB+ A- N3M NOK 6 1st priority pledge THOL4 PRO Thon Holding AS BBB BBB+ N3M NOK 315 1st priority pledge THOL12 PRO Thon Holding AS BBB BBB+ N3M NOK 35 1st priority pledge Source: Nordea Markets & Nordea Markets Ratings 38

39 Spread to swap Real Estate Relative Value Comparison 25 2 BBB 15 ENEID3 A-/A- OLT33 BBB+/A- ENEID41 A-/A- ENEID29 A-/A- A OLT16 BBB+/A- THOL12 PRO BBB/BBB+ 1 OLT1 BBB+/A- AA SST18 BBB+/A Maturity 39 Source: Nordea Markets & Nordea Markets Ratings Euribor Industrial Rating Curves

40 Utilities Indicative Price and Spread Levels (1/3) Ticker Issuer Company Bond Coupon Maturity Price Spread 1mth 3mth Size (m) Rank AEN6 Agder Energi AS A- A- 6.4 % NOK 35 Senior unsecured AEN18 Agder Energi AS A- A % NOK 5 Senior unsecured AEN24 Agder Energi AS A- A- N3M NOK 5 Senior unsecured AEN26 Agder Energi AS A- A- N3M NOK 6 Senior unsecured AEN3 Agder Energi AS A- A- N3M NOK 75 Senior unsecured AEN34 Agder Energi AS A- A- N3M NOK 6 Senior unsecured AKEN1 Akershus Energi AS A- A- N3M NOK 15 Senior unsecured BKK 7/13 BKK AS BBB+ BBB+ N3M NOK 1 5 Senior unsecured BKK81 BKK AS BBB+ BBB % NOK 1 Senior unsecured BKK14 BKK AS BBB+ BBB+ N3M NOK 1 5 Senior unsecured BKK82 BKK AS BBB+ BBB+ 5.9 % NOK 1 Senior unsecured BKK83 BKK AS BBB+ BBB+ N3M NOK 1 Senior unsecured BKK9 BKK AS BBB+ BBB+ 4.7 % NOK 1 Senior unsecured BKK91 BKK AS BBB+ BBB+ N6M NOK 1 Senior unsecured BKK93 BKK AS BBB+ BBB % NOK 1 Senior unsecured BKK1 BKK AS BBB+ BBB+ N3M NOK 1 5 Senior unsecured BKK4 BKK AS BBB+ BBB+ N3M NOK 5 Senior unsecured BKK9 BKK AS BBB+ BBB+ N3M NOK 1 Senior unsecured BKK8 BKK AS BBB+ BBB+ 5. % NOK 1 Senior unsecured ECEN1 PRO E-CO Energi AS A- A % NOK 1 Senior unsecured ECEN11 PRO E-CO Energi AS A- A % NOK 5 Senior unsecured EIEN2 Eidsiva Energi AS A- A- 4.4 % NOK 48 Senior unsecured EIEN3 Eidsiva Energi AS A- A % NOK 7 Senior unsecured EIEN4 Eidsiva Energi AS A- A- N3M NOK 4 Senior unsecured EIEN5 Eidsiva Energi AS A- A % NOK 5 Senior unsecured EIEN6 Eidsiva Energi AS A- A- N3M NOK 4 Senior unsecured EIEN 6/19 Eidsiva Energi AS A- A- 4.8 % NOK 4 Senior unsecured ENBU2 Energiselskapet Buskerud AS BBB+ BBB+ N3M NOK 5 Senior unsecured ENBU 6/15 Energiselskapet Buskerud AS BBB+ BBB+ N3M NOK 25 Senior unsecured ENBU 6/17 Energiselskapet Buskerud AS BBB+ BBB+ N3M NOK 2 Senior unsecured ENBU3 Energiselskapet Buskerud AS BBB+ BBB % NOK 2 Senior unsecured ENBU6 Energiselskapet Buskerud AS BBB+ BBB+ 5.7 % NOK 25 Senior unsecured ENBU8 Energiselskapet Buskerud AS BBB+ BBB+ 5.5 % NOK 5 Senior unsecured HNA35 Hafslund ASA BBB+ BBB+ 6.2 % NOK 75 Senior unsecured HNA66 Hafslund ASA BBB+ BBB+ 5.1 % NOK 5 Senior unsecured Source: Nordea Markets & Nordea Markets Ratings 4

41 Utilities Indicative Price and Spread Levels (2/3) Ticker Issuer Company Bond Coupon Maturity Price Spread 1mth 3mth Size (m) Rank HNA69 Hafslund ASA BBB+ BBB+ 6. % NOK 7 Senior unsecured HNA75 Hafslund ASA BBB+ BBB % NOK 74 Senior unsecured HNA85 Hafslund ASA BBB+ BBB % NOK 4 Senior unsecured HNA87 Hafslund ASA BBB+ BBB+ 6.3 % NOK 5 Senior unsecured HNA88 Hafslund ASA BBB+ BBB+ N3M NOK 15 Senior unsecured HNA89 Hafslund ASA BBB+ BBB+ 5. % NOK 35 Senior unsecured HNA91 Hafslund ASA BBB+ BBB+ N3M NOK 3 Senior unsecured HNA92 Hafslund ASA BBB+ BBB+ 5.5 % NOK 3 Senior unsecured HNA2 Hafslund ASA BBB+ BBB+ N3M NOK 3 Senior unsecured HNA13 Hafslund ASA BBB+ BBB+ N3M NOK 5 Senior unsecured HNA19 Hafslund ASA BBB+ BBB+ 5.5 % NOK 3 Senior unsecured LYSK55 Lyse Energi AS BBB+ BBB+ N3M NOK 2 Senior unsecured LYSK56 Lyse Energi AS BBB+ BBB % NOK 25 Senior unsecured LYSK58 Lyse Energi AS BBB+ BBB % NOK 45 Senior unsecured LYSK62 Lyse Energi AS BBB+ BBB+ N3M NOK 3 Senior unsecured LYSK66 Lyse Energi AS BBB+ BBB % NOK 6 Senior unsecured LYSK7 Lyse Energi AS BBB+ BBB+ N3M NOK 15 Senior unsecured LYSK71 Lyse Energi AS BBB+ BBB % NOK 4 Senior unsecured LYSK85 Lyse Energi AS BBB+ BBB % NOK 35 Senior unsecured LYSK74 Lyse Energi AS BBB+ BBB % NOK 35 Senior unsecured LYSK 4/22 Lyse Energi AS BBB+ BBB+ 5.4 % NOK 211 Senior unsecured SFEN28 PRO Sogn og Fjordane Energi AS BBB BBB N3M NOK 15 Senior unsecured SFEN22 PRO Sogn og Fjordane Energi AS BBB BBB 4.85 % NOK 4 Senior unsecured SFEN21 PRO Sogn og Fjordane Energi AS BBB BBB 5.1 % NOK 4 Senior unsecured SFEN23 PRO Sogn og Fjordane Energi AS BBB BBB N3M NOK 2 Senior unsecured SFEN25 PRO Sogn og Fjordane Energi AS BBB BBB N3M NOK 15 Senior unsecured STAKR1 Statkraft AS A- A- N3M NOK 2 2 Senior unsecured STAKR11 Statkraft AS A- A- 5. % NOK 2 6 Senior unsecured STAKR12 Statkraft AS A- A % NOK 1 5 Senior unsecured STAKR27 Statkraft AS A- A- 5. % NOK 1 55 Senior unsecured STAKR29 Statkraft AS A- A- 6.3 % NOK 1 Senior unsecured STAKR31 Statkraft AS A- A- 5.4 % NOK 1 1 Senior unsecured STATK1 Statkraft AS A- A- N3M NOK 3 2 Senior unsecured STATK2 Statkraft AS A- A % NOK 1 1 Senior unsecured STANE2 Statnett SF A+ A+ N6M NOK 4 Senior unsecured Source: Nordea Markets & Nordea Markets Ratings 41

42 Utilities Indicative Price and Spread Levels (3/3) Ticker Issuer Company Bond Coupon Maturity Price Spread 1mth 3mth Size (m) Rank STANE3 Statnett SF A+ A % NOK 55 Senior unsecured STANE4 Statnett SF A+ A+ 4. % NOK 6 Senior unsecured STANE5 Statnett SF A+ A % NOK 46 Senior unsecured STANE14 Statnett SF A+ A % NOK 6 Senior unsecured STANE15 Statnett SF A+ A % NOK 6 Senior unsecured STANE25 Statnett SF A+ A % NOK 3 Senior unsecured STANE29 Statnett SF A+ A+ 4.5 % NOK 3 Senior unsecured STANE36 Statnett SF A+ A % NOK 1 Senior unsecured TAK1 PRO Tafjord Kraft AS BBB BBB N3M NOK 6 Senior unsecured TROEN1 PRO TrønderEnergi AS BBB+ BBB+ 4.5 % NOK 45 Senior unsecured VARD3 Vardar AS BB+ BB+ N3M NOK 1 Senior unsecured VARD4 Vardar AS BB+ BB+ 4.3 % NOK 1 Senior unsecured VARD6 Vardar AS BB+ BB+ N3M NOK 25 Senior unsecured OSEN7 Østfold Energi AS BBB+ BBB+ 5.5 % NOK 35 Senior unsecured Source: Nordea Markets & Nordea Markets Ratings 42

43 Spread to swap Utilities Relative Value Comparison 25 2 VARD3 BB+/BB+ ENBU3 BBB+/BBB+ BBB LYSK 4/22 BBB+/BBB+ 15 LYSK66 BBB+/BBB+ SFEN21 PRO BBB/BBB EIEN6 A-/A- HNA19 BBB+/BBB+ A 1 ENBU2 BBB+/BBB+ TAK1 PRO BBB/BBB ECEN11 PRO A-/A- BKK82 BBB+/BBB+ AEN18 A-/A- STAKR1 A-/A- STANE5 A+/A+ AA HNA91 BBB+/BBB+ STANE2 A+/A+ STANE4 A+/A+ 5 BKK83 BBB+/BBB+ EIEN4 A-/A Maturity 43 Source: Nordea Markets & Nordea Markets Ratings Euribor Industrial Rating Curves

44 NOKm Maturity Distribution Corporate Bonds Investment Grade High Yield Source: Stamdata & Nordea Markets 44

45 Public Rating Corporates Norwegian Bond Market Issuer S&P Outlook Moody's Outlook Fitch Outlook Aker Solutions ASA BB+ Stable BW Group Ltd BB Stable Ba2 Negative Fjellinjen AS AA- Stable Frontier Drilling ASA CCC Watch Pos Norges Statsbaner AS AA- Stable Aa2 Negative Norsk Hydro ASA BBB Stable Baa2 Stable Norske Skogindustrier ASA B- Stable Caa1 Negative Northland Resources AB B- Stable Caa1 Stable Ocean Rig UDW Inc B Stable B2 Negative Petroleum Geo-Services ASA BB Stable Ba1 Stable Royal Caribbean Cruises Ltd BB- Stable Ba2 Stable SAS AB B- Negative Caa1 Stable Ship Finance International Ltd BB Negative B1 Stable Songa Offshore SE B+ Stable B2 Stable Statkraft AS A- Stable Baa1 Stable BBB+ Stable Statnett SF A+ Stable A2 Stable Statoil ASA AA- Stable Aa2 Stable Telenor ASA A- Stable A3 Stable Teollisuuden Voima Oyj BBB Stable BBB+ Stable Yara International ASA BBB Stable Baa2 Stable On 14 June Moody s downgraded BW Group to Ba2 from Ba1, while revising the outlook to negative. The rating downgrade reflects the group s high debt leverage and weakened level of interest coverage. On 4 June S&P assigned Teollisuuden Voima (TVO) a BBB rating with stable outlook. The stable outlook reflects S&P s expectations that TVO will continue to produce electricity efficiently and at competitive cost for its shareholders. On 1 June Fitch downgraded Teollisuuden Voima (TVO) to BBB+ from A-, affirming the stable outlook. The downgrade reflects Fitch s concerns over the impact on TVO s credit profile of the continued delay to the commissioning of the third nuclear plant. On 28 May S&P assigned a B- rating with stable outlook to Northland Resources secured bond debt. At the same time, Moody s assigned a Caa1 rating with stable outlook to Northland Resources secured bond debt. On 1 May Moody s revised the outlook on Songa Offshore to stable. The rating action follows the company s recent equity issuance and credit facility amendments, including a deferral of loan instalments for four quarters. Source: S&P, Moody s & Fitch 45

46 Nordea Markets Credit Research Rating Changes No rating changes in our research coverage during June and July 212. Source: Nordea Markets & Nordea Markets Ratings 46

47 Thank you! Lars Kirkeby Nordea Markets is the name of the Markets departments of Nordea Bank Norge ASA, Nordea Bank AB (publ), Nordea Bank Finland Plc and Nordea Bank Danmark A/S. Chief Analyst The information provided herein is intended for background information only and for the sole use of the intended recipient. The views and other information provided herein are the current views of Nordea Markets as of the date of this document and are subject to change without notice. This notice is not an exhaustive description of the described product Nordea the risks Markets related to it, and it should not be relied on as such, nor is it a substitute for the judgement of the recipient. Middelthuns gate 17 The information provided herein is not intended to constitute and does not constitute investment advice nor is the information intended as an offer or solicitation for the purchase or sale of any financial instrument. P.O. The Box information 1166 contained Sentrum herein has no regard to the specific investment objectives, the financial situation or particular needs of any particular recipient. Relevant and specific professional advice should always be obtained before making any investment or credit decision. It is important to note that past performance is not indicative of future results. NO-17 Oslo, Norway Phone Nordea Markets is not and does not purport to be an adviser as to legal, taxation, accounting or regulatory matters in any jurisdiction Fax This document may not be reproduced, distributed or published for any purpose without the prior written consent from Nordea Markets Mobile [email protected]

48 Disclaimer Nordea Markets is the name of the Markets departments of Nordea Bank Norge ASA, Nordea Bank AB (publ), Nordea Bank Finland Plc and Nordea Bank Danmark A/S. The information provided herein is intended for background information only and for the sole use of the intended recipient. The views and other information provided herein are the current views of Nordea Markets as of the date of this document and are subject to change without notice. This notice is not an exhaustive description of the described product or the risks related to it, and it should not be relied on as such, nor is it a substitute for the judgement of the recipient. The information provided herein is not intended to constitute and does not constitute investment advice nor is the information intended as an offer or solicitation for the purchase or sale of any financial instrument. The information contained herein has no regard to the specific investment objectives, the financial situation or particular needs of any particular recipient. Relevant and specific professional advice should always be obtained before making any investment or credit decision. It is important to note that past performance is not indicative of future results. Nordea Markets is not and does not purport to be an adviser as to legal, taxation, accounting or regulatory matters in any jurisdiction. This document may not be reproduced, distributed or published for any purpose without the prior written consent from Nordea Markets.