Equinor’s debt strategy is to support the overall financial flexibility of the group and ensure competitive terms and conditions on long-term debt.
Our debt and credit ratings
Our credit rating target is to be within the single A category on a stand-alone basis. This rating ensures access to relevant capital markets at favourable terms and conditions.
As of 31 December 2023, Equinor had a long-term credit rating of Aa2 (Moody’s Investors Service) and AA- (Standard & Poor’s Global Ratings), including an uplift due to state ownership (two notches from Moody’s Investors Service and one notch from Standard & Poor’s Global Ratings compared to their respective stand- alone credit rating assessments of Equinor). This rating is well above our rating target and ensures sufficient predictability when it comes to funding access at attractive terms and conditions.
Equinor generally seeks to establish financing at the corporate (top company) level. Loans or equity are then extended to subsidiaries to fund their capital requirements.
Project financing may be used in cases involving incorporated joint ventures with other companies. The aim is to always have access to a variety of funding sources across different markets and instruments, as well as maintain relationships with a core group of international banks that provide a wide range of banking services.
About our external debts, loans and bond issuances
Normally the parent company, Equinor ASA, incurs the external debt and then extends loans or equity to wholly owned subsidiaries to fund capital requirements within the group.
Equinor Energy AS is co-obligor or guarantor of existing debt securities and other loan arrangements of Equinor ASA. As co-obligor, Equinor Energy AS assumes and agrees to perform, jointly and severally with Equinor ASA, all payments and covenant obligations for this debt.
Long-term funding is raised when we identify a need for such financing based on our business activities and cash-flows or to pre-fund when market conditions are considered favorable.
Equinor has been a regular bond issuer and Equinor’s current long-term ratings are AA- and Aa2 from S&P and Moody’s, respectively.
Bond issuances* 2011 - 2023 per currency (Equivalent in USD) Updated 31 December 2023
*Issuance activity under US Shelf, EMTN and separate documentation.
Debt strategy
Equinor’s debt strategy is to support the overall financial flexibility of the company and ensure competitive terms and conditions on long-term debt.
The key elements:
Bond issuances, as a main rule, are centralised at the corporate level. Project financing and other structured finance solutions are from time to time considered and applied at subsidiary level and for partially owned legal entities.
Access to a well-diversified investor base (geographical, maturity and type)
To limit the refinancing risk, Equinor will seek to maintain a smooth maturity profile with a high “Average Year To Maturity” (9 years as of 31 March 2024). Annual redemptions will normally not exceed 5% of capital employed.
Bonds are normally issued at fixed rates in a variety of currencies but by issuing both fixed and floating interest rate debt, Equinor’s funding sources become more diversified through reaching a broader spectrum of bond investors.
Debt programmes
Equinor has established the following debt programmes to ensure financial flexibility across markets and maturities:
Latest update
Valid to
Programme
Limit
Credit rating
Utilisation as of 31 March 2024
Moody’s
S&P
US Commercial Paper (USCP)
USD 5 billion
P-1
A-1+
USD 0.4 billion
2024
2025
Euro Medium Term Note (EMTN)
EUR 20 billion
Aa2
AA-
EUR 7.4 billion
2023
2026
US Shelf Registration
Unlimited
Aa2
AA-
USD 13.9 billion
Separate Documentation
N/A
-
-
USD 0.3 billion
The USCP programme is used for shorter maturities (up to 364 days), while the EMTN Programme and the US Shelf Registration are used for longer maturities.
The different funding programmes ensure that Equinor has sufficient flexibility when choosing the following:
Maturity
Currency
Interest Rate (Fixed or Floating)
Geographic Market (Europe, USA or Asia)
US Shelf Registration Statement
The registration statement is a filing with the Securities and Exchange Commission in the U.S and it permits multiple public debt offerings without having a separate prospectus for each offering. The registration statement is the base prospectus and will be updated with prospectus supplements for any subsequent debt offerings. The base prospectus is updated every third year.
The EMTN programme
The EMTN Programme was established in 1997 and is listed on the London Stock Exchange. The Programme ensures Equinor access to non-US markets and is a good complement to the US Shelf Registration.
The EMTN Programme was last updated on 30 April 2024. The programme has a limit of EUR 20 billion.
Equinor has a multicurrency revolving credit facility of USD 5 billion, including USD 3 billion “swing line” (same day value) option. The facility was signed on 1 November 2024 and is available for 5 years. Equinor has the option to further extend the maturity twice by one additional year. The credit facility serves as a backstop facility for the group’s borrowing in the US Commercial Paper market.
Credit rating
A strong credit rating is important in order to ensure necessary financial flexibility to support a dynamic strategy through economic and market cycles.
Equinor has credit ratings from Moody’s and Standard and Poor’s and the stated objective is to have credit ratings at least within the single A category on a standalone basis. (Current corporate rating includes one notch uplift from Standard & Poor’s and two notch uplift from Moody’s). This rating ensures necessary predictability when it comes to funding access to relevant capital markets at favourable terms and conditions.
Equinor’s current credit ratings are as follows:
MOODY’S
S&P Global Ratings
Long-term rating
Aa2
AA-
Short-term rating
P-1
A-1+
Outlook
Stable
Stable
Debt presentations
Here, Equinor posts the most current (last 12 months) debt investor presentations in PDF format.
