Norway to Convert Loan Into 6.37% Stake in Norwegian Air

Norway’s Ministry of Trade, Industry and Fisheries will convert half of its 2021 rescue loan to Norwegian Group into equity, acquiring a 6.37% ownership stake in the airline. The state-backed conversion involves issuing 65,582,436 new shares, expected to be delivered by May 27, 2025, according to a filing with the Oslo Stock Exchange.

The remaining 50% of the NOK 1.2 billion (USD 115 million) loan will be repaid by Norwegian. As part of the agreement, the airline will repurchase half of the government’s shares in the convertible bond loan, valued at USD 59 million. The ministry expects to receive total proceeds of USD 82.6 million, resulting in a gain of USD 23.6 million from the transaction.

Trade Minister Cecilie Myrseth said the repayment and equity conversion reflect Norwegian’s recovery. “Norwegian is now in a position where it can repay the loan after its financial reconstruction and subsequent efforts. This agreement gives the state a significant gain,” she stated.

Norwegian Air Shuttle ASA is the parent company of Norwegian Air Shuttle AOC and Norwegian Air Sweden AOC. As of December 31, 2024, its largest shareholders included Geveran Trading Company Ltd. (14.53%), Folketrygdfondet (8.72%), DNB Asset Management AS (4.33%), and Ballyfin Aviation Limited (3.27%). The top 20 shareholders held a combined 53.7% of the company’s shares, while 46.3% were distributed among smaller investors.

The deal marks another step in Norwegian’s efforts to stabilize its finances and position itself for long-term growth.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com