BlueNord ASA Successfully Completes Subordinated Hybrid Bond Placement to Strengthen Capital Structure

BlueNord ASA Successfully Completes Subordinated Hybrid Bond Placement

In a significant development for the financial sector, BlueNord ASA, trading under the ticker OSE: BNOR, has announced the successful placement of a substantial USD 300 million subordinated callable hybrid bond. This placement, which occurred on June 26, 2025, is designed to fortify BlueNord's capital structure and enhance its financial flexibility moving forward.

The hybrid bond, which matures in 2085, is set to carry a fixed annual interest rate of 12%, payable semi-annually. It features an initial call at 100% of its nominal value, with an interest step-up expected after 4.5 years. The decision to issue this type of bond has been lauded as a pivotal step in the evolution of BlueNord's financing strategy by CEO Euan Shirlaw.

According to Shirlaw, “This successful placement of a hybrid bond marks a key milestone in the evolution of BlueNord's capital structure. The instrument allows us to refinance the convertible bond raised during our entry into the DUC in 2019 while preserving our financial flexibility and eliminating the equity dilution associated with BNOR15's mandatory conversion.” With Tyra’s recent full operation, BlueNord anticipates a strong outlook for both production and cash flow, alongside a resilient balance sheet.

The bond settlement is expected to occur around July 10, 2025, subject to customary conditions, including approvals from lenders in the Company's USD 1.4 billion reserve-based lending facility. Furthermore, BlueNord is preparing to list these bonds on the Oslo Stock Exchange. The net proceeds from the bond issuance will be directed toward refinancing outstanding portions of the existing subordinated convertible bonds identified by their ISIN NO 0012780867, also known as BNOR15. The company is eligible to execute a clean-up call under BNOR15, allowing full redemption of any remaining bonds once the threshold for outstanding bonds has been satisfied.

In orchestrating this hybrid bond issue, BlueNord enlisted the expertise of several financial institutions. Joint bookrunners consist of Arctic Securities AS, Clarksons Securities AS, DNB Carnegie (part of DNB Bank ASA), and Pareto Securities AS. Meanwhile, co-managers for the placement included ABN AMRO Bank N.V, Fearnley Securities AS, and Sparebank 1 Markets AS. Legal advisement was provided by Advokatfirmaet BAHR AS for the company, while Advokatfirmaet Thommessen AS advised the managers involved in the transaction.

The issuance of these bonds not only reflects BlueNord's commitment to strengthening its capital base but also its strategic direction towards ensuring long-term growth and stability within the competitive landscape of the energy sector. Stakeholders and investors are keenly watching how this development will influence the company's next steps, particularly as it navigates the complexities of the market environment and growing operational demands.

Overall, the recent placement of subordinated hybrid bonds positions BlueNord ASA effectively for future undertakings and validates the trust placed in the company by investors amid evolving market conditions. As BlueNord advances in its operational capabilities with Tyra and seeks to increase cash flows, the leadership is optimistic about achieving its strategic objectives while upholding stakeholder interests.