Hafslund ASA is about to issue a new 10 year bond with fixed interest. The first tranche of the issue amounts to NOK 740 million, whereas total size is NOK 1,000 million. Payment date is 19 March 2008. Hafslund's largest shareholder, The City of Oslo, is the sole investor in the first tranche. An application for listing of the bond on the Oslo Stock Exchange will be made and loan agreement will be entered into with Norsk Tillitsmann ("Norwegian Trustee").

 

DnB NOR Markets and Nordea Markets has been appointed as arrangers of the issue. The arrangers will make independent evaluations to determine the coupon and make sure that the bond will be made at market terms.

 

The proceeds will be used for refinancing of a bond issue which matures on 19 March 2008. Outstanding amount in this issue is NOK 1,065 million.

 

Hafslund ASA also considers issuing a new 5 year bond in the amount of NOK 300 - 500 million in the near future.

 

Hafslund ASA has commercial papers of NOK 580 million maturing in April and 500 million maturing in May this year. These maturities will most probably be refinanced in the commercial paper market in Norway and Belgium.

 

 

Hafslund ASA

Oslo, 27 February 2008

 

 

For further information, please contact:

Group Treasurer Ketil Wang, phone + 47 975 13 135