5.2 Financing and going concern

In the second quarter of 2013, Klaveness issued a NOK 300 million senior unsecured bond. Attractive timing for prudent fleet expansion at historically low prices combined with the strategy to utilise its strong balance sheet were decisive factors. The issuance was well received in the market, resulting in favourable terms. The bond was listed on the Nordic ABM exchange. The bond issue strengthened the company’s liquidity and financial capacity.

During 2013 the company secured bank financing for the two container newbuildings Banak and Bardu. The existing container vessel loans were refinanced in Klaveness Container AS in connection with the restructuring of the group companies. The kamsarmax and cabu newbuildings which were ordered in 2013/14 with delivery in 2015 and 2016 are likely to be financed well before delivery.

The accounts are reported under the assumption of a going concern and the Board considers the financial position of Torvald Klaveness at year-end to be solid.

There have been no major transactions or events subsequent to the closing date that would have a negative impact on the evaluation of the financial position of Torvald Klaveness. A new NOK 400 million bond was issued in the first quarter of 2014, strengthening the liquidity further.