Entra

Capital/Financing Update • Jul 1, 2015

The Group's interest-bearing debt is subject to variable interest rate, including fixed rate bonds, which are swapped to variable rate. The Group manages interest rate risk by entering into floating-to-fixed interest rate swaps. The table below shows the maturity profile and contribution from floating-to-fixed interest rate swaps used for hedging purposes, as well as maturity profile for credit margins on debt.

The Group's average interest rate	%
Swap interest rate (net)	1.58
NIBOR on debt	1.42
Credit margin on debt	0.96
Total	3.96

Pay fixed / receive floating swaps¹			Forward starting swaps²			Average credit margin on debt
	Amount (NOKm)	Interest rate (%)	Amount	Interest rate (%)	Tenor (years)	Amount (NOKm)	Credit margin (%)
<1 year	-	-	-	-		5 223	0.90
1-2 years	170	3.13	500	2.83	8	2 300	1.13
2-3 years	1 042	4.19	600	2.19	7	500	0.90
3-4 years	1 850	3.77	200	2.71	7	1 200	1.20
4-5 years	1 600	4.14				1 000	0.92
5-6 years	1 150	4.39				700	1.24
6-7 years	550	3.76				400	0.59
7-8 years	300	3.97				500	1.63
8-9 years	150	5.36				-	-
9-10 years	400	2.56				-	-
>10 years	510	5.36				1 100	0.39
Total	7 722	4.06				12 923	0.96
Pay fixed	7 722	4.06
Receive float	-7 722	1.41
Swap interest rate (net)		2.65
Hedge ratio adjusted rate³ (60%) 1.58

¹Excluding forward starting swaps.

²The table displays future starting point, notional principle amount, average fixed rate and tenor for forward starting swaps. ³Hedge ratio = outstanding notional principal amount (swaps) / nominal interest bearing debt.