{"id":2536,"date":"2021-05-21T07:56:48","date_gmt":"2021-05-21T05:56:48","guid":{"rendered":"https:\/\/norfund.wpenginepowered.com\/annualreport-2020\/?page_id=2536"},"modified":"2022-05-24T16:30:09","modified_gmt":"2022-05-24T14:30:09","slug":"note-11","status":"publish","type":"page","link":"https:\/\/reports.norfund.no\/annualreport-2021\/annual-report\/notes\/note-11\/","title":{"rendered":"Note 11 – Bank Deposits, Cash and Cash Equivalents"},"content":{"rendered":"
\n\t\t\t\t\n\t\t\t\t\t

Note 11<\/h4>\n\t\t\t\t\t

Bank Deposits, Cash and Cash Equivalents<\/h3>\n\t\t\t\t<\/span>\n\t\t\t\t<\/span>\n\t\t\t<\/a>
  1. Accounting principles<\/a><\/li>\n
  2. Segment Information<\/a><\/li>\n
  3. Loans and Investments<\/a><\/li>\n
  4. Exited Investments<\/a><\/li>\n
  5. Payroll Expenses<\/a><\/li>\n
  6. Other Operating Expenses<\/a><\/li>\n
  7. Net financial income\/expense<\/a><\/li>\n
  8. Fixed Assets<\/a><\/li>\n
  9. Other Receivables<\/a><\/li>\n
  10. Tax<\/a><\/li>\n
  11. Bank Deposits, Cash and Cash Equivalents<\/a><\/li>\n
  12. Capital Movements<\/a><\/li>\n
  13. Unused Resources<\/a><\/li>\n
  14. Information on financial market risk and the use of financial instruments<\/a><\/li>\n
  15. Current liabilities and guarantees<\/a><\/li>\n
  16. Events after balance-sheet date<\/a><\/li>\n<\/ol><\/div><\/div><\/div><\/div>\n\n
    (Figures in 1000s of NOK)<\/th>2021<\/th>2020<\/th><\/tr><\/thead>
    Deposits in Norges Bank<\/td>3 256 120<\/td>2 345 227<\/td><\/tr>
    Tax deductions<\/td>6 118<\/td>5 316<\/td><\/tr>
    Unused resources, note 14<\/td>176 417<\/td>158 837<\/td><\/tr>
    Ordinary bank deposits<\/td>799 308<\/td>387 822<\/td><\/tr>
    Total bank deposits<\/td>4 237 965<\/td>2 897 203<\/td><\/tr><\/tbody><\/table><\/div><\/div>\n\n\n

    Other current assets<\/h3>\n\n\n\n

    Other current assets are bank deposits in USD and with agreed short-term interest due dates of 3- 6 months.<\/p>\n\n\n

    Other short-term Investments<\/th><\/tr>
    (Figures in 1000s of NOK)<\/th>2021<\/th><\/tr><\/thead>
    Deposits with a fixed-interest period (1 to 6 months)<\/td>1 767 915<\/td><\/tr>
    Lending to banks of excess liquidity in our markets<\/td>1 867 067<\/td><\/tr>
    Bonds (average maturity 3.3 years)<\/td>4 361 787<\/td><\/tr>
    Other short-term investments<\/td>7 996 769<\/td><\/tr><\/tbody><\/table><\/div><\/div>\n\n\n

    As a consequence of the exit from SN Power, substantial liquidity was available and was placed in temporary investments: First, loans were extended to three banks with an average interest rate of 1.5% + LIBOR and a maturity of 5 years, with linear repayment after the first year. Second, USD deposits were placed in banks with fixed-interest periods of 1\u20136 months.<\/p>\n\n\n\n

    Furthermore, Allianz has been commissioned to manage USD 500 million. The portfolio consists of highly liquid covered bonds and has a weighted credit rate of AA- and average maturity of 3.3 years. The portfolio is to be mainly invested in development banks, i.e. within the sector in which we operate ourselves. Up to 40% can be invested in other sectors, however, but the bonds must then meet the requirements of either being green and sustainable or having a social impact. Norges Bank\u2019s Investment Management\u2019s exclusion list is also applied. 38% of the portfolio is invested in euros and 7% in sterling but hedged against USD by means of 3-month rolling futures contracts. Hedging contracts have been made for EUR 164.1 million and GBP 25.6 million. The value of the portfolio has fallen in pace with expectations of higher key policy rates, and we expect further falls in the period ahead. However, Norfund intends to hold the portfolio until maturity, with the result that the average annual return is estimated at 0.88% for the life of the portfolio.<\/p>\n\n\n

    Bonds<\/th>Instrument currency<\/th>Fair value of instr. currency<\/th>Historical cost in USD<\/th>Fair value in USD<\/th>Change in value<\/th>Book value in NOK<\/th><\/tr><\/thead>
    Enterprises<\/td><\/td><\/td>163 964<\/td>161 828<\/td>-2 136<\/td>1 427 228<\/td><\/tr>
    Financial institutions<\/td>EUR<\/td>75 579<\/td>86 814<\/td>85 949<\/td>-866<\/td>758 014<\/td><\/tr>
    <\/td>USD<\/td>33 105<\/td>33 651<\/td>33 105<\/td>-546<\/td>291 964<\/td><\/tr>
    Manufacturing<\/td>EUR<\/td>3 156<\/td>3 627<\/td>3 589<\/td>-38<\/td>31 656<\/td><\/tr>
    <\/td>USD<\/td>17 707<\/td>18 054<\/td>17 707<\/td>-347<\/td>156 166<\/td><\/tr>
    Supply<\/td>EUR<\/td>18 887<\/td>21 818<\/td>21 478<\/td>-339<\/td>189 427<\/td><\/tr>
    Public authorities<\/td><\/td><\/td>303 971<\/td>299 585<\/td>-4 386<\/td>2 642 161<\/td><\/tr>
    Agencies<\/td>EUR<\/td>14 682<\/td>16 876<\/td>16 697<\/td>-179<\/td>147 254<\/td><\/tr>
    <\/td>USD<\/td>22 067<\/td>22 367<\/td>22 067<\/td>-300<\/td>194 616<\/td><\/tr>
    Local authorities<\/td>EUR<\/td>2 035<\/td>2 324<\/td>2 314<\/td>-10<\/td>20 405<\/td><\/tr>
    Independent organisations<\/td>USD<\/td>7 720<\/td>7 766<\/td>7 720<\/td>-46<\/td>68 085<\/td><\/tr>
    Supranational authorities<\/td>EUR<\/td>48 750<\/td>55 954<\/td>55 439<\/td>-516<\/td>488 935<\/td><\/tr>
    <\/td>GBP<\/td>25 293<\/td>34 813<\/td>34 258<\/td>-555<\/td>302 138<\/td><\/tr>
    <\/td>USD<\/td>161 091<\/td>163 870<\/td>161 091<\/td>-2 779<\/td>1 420 728<\/td><\/tr>
    Government bonds<\/td><\/td><\/td>19 930<\/td>19 911<\/td>-19<\/td>175 600<\/td><\/tr>
    US government bonds<\/td>USD<\/td>19 911<\/td>19 930<\/td>19 911<\/td>-19<\/td>175 600<\/td><\/tr>
    Cash<\/td><\/td><\/td>11 480<\/td>13 243<\/td>1 763<\/td>116 798<\/td><\/tr>
    <\/td>EUR<\/td>331<\/td>377<\/td>886<\/td>509<\/td>7 813<\/td><\/tr>
    <\/td>GBP<\/td>221<\/td>300<\/td>315<\/td>16<\/td>2 779<\/td><\/tr>
    <\/td>USD<\/td>10 804<\/td>10 804<\/td>12 042<\/td>1 238<\/td>106 206<\/td><\/tr>
    Total<\/td><\/td><\/td>499 345<\/td>494 567<\/td>(4 777)<\/td>4 361 787<\/td><\/tr><\/tbody><\/table><\/div><\/div>","protected":false},"excerpt":{"rendered":"

    Other current assets Other current assets are bank deposits in USD and with agreed short-term interest due dates of 3- 6 months. As a consequence of the exit from SN Power, substantial liquidity was available and was placed in temporary investments: First, loans were extended to three banks with an average interest rate of 1.5% […]<\/p>\n","protected":false},"author":5,"featured_media":0,"parent":2101,"menu_order":10,"comment_status":"closed","ping_status":"closed","template":"","meta":{"norfund_header_layout":"","norfund_header_layout_image_id":0,"norfund_header_layout_image_focal_point_x":0,"norfund_header_layout_image_focal_point_y":0,"norfund_header_layout_suptitle":"","norfund_header_layout_subtitle":"","norfund_header_layout_title":"Notes","teft_cards_image_id":0,"teft_cards_image_focal_point_x":0,"teft_cards_image_focal_point_y":0,"teft_cards_title":"","teft_cards_excerpt":""},"acf":[],"yoast_head":"\nNote 11 - Bank Deposits, Cash and Cash Equivalents | Report on Operations 2021<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/reports.norfund.no\/annualreport-2021\/annual-report\/notes\/note-11\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Note 11 - Bank Deposits, Cash and Cash Equivalents | Report on Operations 2021\" \/>\n<meta property=\"og:description\" content=\"Other current assets Other current assets are bank deposits in USD and with agreed short-term interest due dates of 3- 6 months. 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