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Taking a Long-term View

Borealis Taking a Long-term View

by Jan-Martin Nufer, Director of Treasury & Funding, Borealis

We established our new funding and banking strategy in Borealis 2007, with the aim of creating a diverse and robust finance portfolio. This was the start of a journey on which we have been travelling ever since, with the aim of achieving the ‘ideal’ funding portfolio, which in reality, doesn’t have a final end point. Minimisation of funding costs alone is, in my view, not a strategy or long-term vision. As a result, cost reduction is only one factor amongst other, more important parameters, in building a solid funding backbone. Over the past eight years, we have concluded a suite of financing transactions exceeding EUR 5bn in value, including a series of ‘firsts’, marking a major ramp up in the sophistication and precision in our approach to funding.

Credit characteristics

Borealis is an unrated corporation in the petrochemicals, polyolefins and base chemicals, sector, with business cyclicality typical of the industry. We have two shareholders: International Petroleum Investment Company (IPIC) of Abu Dhabi (64%) with the remaining 36% held by OMV Aktiengesellschaft, one of Austria’s largest listed industrial companies, with both upstream and downstream oil and gas activities. Borealis operates various joint ventures, by far the most important being Borouge, a company co-owned together with ADNOC, the national oil company of Abu Dhabi.