OSLO, April 1 (Reuters) – Norwegian oil company Equinor has taken on $ 5 billion in debt as part of its plan to address the dual effects of a collapse in crude oil prices and the coronavirus outbreak, it said on Wednesday.

Equinor announced over the past few weeks cuts in operating costs and investments of approximately $ 3 billion and indefinitely postponed a four-year share buyback program valued at $ 5 billion.

Moody’s confirmed Equinor’s senior unsecured debt rating of Aa2 on Wednesday, but said it had changed its outlook from stable to negative as the price of oil and gas hit the company’s finances.

“Equinor is in a strong position to deal with market volatility and uncertainty,” said CFO Lars Christian Bacher in a statement announcing the debt issue. The company is majority owned by the Norwegian government.

“Combined with our $ 3 billion cost-cutting action plan, this transaction will further increase our financial resilience and flexibility going forward, and ensure liquidity for prioritized projects,” he added.

North Sea Brent crude prices fell more than 50% last month as energy demand collapsed during the coronavirus outbreak and a price war between Saudi Arabia and Russia.

The bonds announced on Wednesday consist of five separate tranches, have terms of between five and 30 years, and have a yield of 2.875% for the bonds due in 2025, gradually increasing to 3.7% for those due in 2050 increase.

The net proceeds will be used for general corporate purposes including possible repayment or purchase of existing debt, Equinor said.

The bonds were fully subscribed and the settlement date was Monday, she added.

Equinor is the dominant oil producer in Norway, while its overseas operations extend from the UK and Angola to Brazil and the United States. (Reporting by Terje Solsvik; editing by Peter Cooney)