Summer update 2022 - Banking and Finance

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Rapid shifts in the global economy, environmental focus and political climate have had a significant impact on the Norwegian lending market during the last period and although the Norwegian high yield bond market has been unusually quiet, alternative financing is still available across most sectors.

Simonsen Vogt Wiig has lately experienced an exceptional increase in new transactions within the offshore supply market. The traditional corporate lending, real estate and shipping markets have also stayed strong with a high volume of transactions with both banks and an increasing number of alternative project-based funding sources.

We have also experienced increased activities within the new renewable sector with many diversified market participants entering the market for new renewable power production and fuel industry. We expect this trend to continue in the coming years with an increased focus on project financings in the Norwegian market.

It has, on the other hand, been unusually quiet in the Norwegian high yield bond market. Companies which normally would seek financing in the bond market have obtain financing elsewhere, including short term bridge-to-bond financings, or postponed their investments.

We have also seen less activity within larger restructurings, which was expected since many restructurings have been finalized since last year.

For legal and regulatory developments, the first half of 2022 has been dominated by a strong focus on reference rate terms, at least for US dollar loans undergoing a change from LIBOR to SOFR. Sanctions and KYC still dominate and play an important role in the documentation together with increased focus on sustainability linked loans and other sustainability aspects.

With the summer coming up we would like to take the opportunity to thank all our clients and counterparties for the good cooperation and wish everyone a good summer!

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