Elkem aims to maintain an investment grade profile and targets a leverage ratio in the level of 1.5 – 2.0x. Elkem will target a smooth maturity profile on its the loan portfolio. The intension is to refinance any significant debt obligation well in advance of its final maturity date. Elkem will primarily follow a floating interest rate policy. Elkem aims to keep a liquidity reserve of not less than 10% of the group’s annual turnover. The liquidity reserve is defined as cash and available credit lines. Elkem has two financial covenants in its external loan agreements;
- Interest Cover Ratio - shall exceed 4.00:1.00
- Equity Ratio - shall be equal to or more than 30 %.