Selvaag Bolig’s goal is to have a capital structure which ensures that it has access to the funding required at any given time to handle prevailing market conditions.
It also aims to maintain the financial flexibility which allows it to exploit market opportunities which might be available and at times. Moreover, the group will ensure sufficient liquidity to meet its on-going financial commitments.
Selvaag Bolig is financed by equity and debt, with interest-bearing liabilities comprising bank borrowing and debt to Urban Property.
The composition of the group’s capital structure will vary over time, depending on its growth, capital costs, market trends, competition and potential acquisitions. If required, additional funds can be obtained as new equity and/or external capital.
The division between equity and debt will normally vary with the level of activity in the company, since project finance increases/decreases in line with the level of construction activity in the group.