NORWAY Law and Practice Contributed by: Ida Marie Windrup, Kristine Hjertenæs, Markus Nilssen and Daniel Jovanovic, BAHR
BAHR Tjuvholmen allé 16 0252 Oslo Norway Tel: +47 21 00 00 50 Email: post@bahr.no Web: www.bahr.no
1. Market 1.1 Major Lender-Side Players
financial institutions. For that reason, private credit being offered by large debt funds has his- torically had a limited presence in the Norwe- gian market. However, direct lending continues to rise in significance as a financing option for acquisition financings, and there is an increasing trend for large funds to serve as lenders to for- eign acquirers, including Norwegian, with whom they have pre-existing relationships and where the financing arrangement has been initiated abroad under an exemption for “reverse solici- tation” , which is generally permitted. Market observations indicate a clear upward trajectory in this area, which is evident in both bond issu- ance and formats, and through direct, bilateral agreements. There is continued strong activity from international debt funds in the Norwegian market, further diversifying the financing options available for acquisitions. Traditional lenders, such as banks, also appear to have better appetite for leveraged acquisi- tion financings following changes in legislation introduced in 2020 which make it easier for a Norwegian target entity to grant security and guarantees for acquisition financings where the acquiring company is incorporated in an EEA jurisdiction and will control the Norwegian target entities following the acquisition.
The current global political climate continues to influence the financing landscape. Norway, along with other European nations, has experi- enced elevated inflation rates and rising interest rates, which led to considerable strain in certain industries, notably real estate. In 2024, infla- tion rates stabilised, reaching 3.6% in February 2025. Interest rates in Norway remain high, and Norges Bank’s Monetary Policy and Financial Stability Committee decided to keep the policy rate unchanged at 4.5% at its meeting on 26 March 2025. At the same time, however, the combination of the current market and a relatively weak Nor- wegian krone is creating new prospects for new players. Consequently, there is a surge in interest for mergers and acquisitions from international investors and companies, particularly targeting sectors like aquaculture, technology, and renew- able energy, as well as other deals that might be secured at a favourable rate due to the current exchange rate. In Norway, lending remains strictly regulated, and therefore financing generally has tradition- ally been predominantly offered by domestic banks, and to a lesser degree by international
326 CHAMBERS.COM
Powered by FlippingBook