Present:

Executive Board:

Øystein Olsen, Jon Nicolaisen, Egil Matsen, Kjetil Storesletten, Karen Helene Ulltveit-Moe, Kathryn M. Baker, Steinar Juel and Kristine Ryssdal

Alternates:

Arne Hyttnes and Kristine Landmark

Employee representatives:

Mona H. Sørensen and Nina Larsson Midthjell (items 70-78)

Supervisory Council:

Jan Frode Jakobsen (items 70-71, 74-82, 88-92)

Deloitte:

Henrik Woxholt (items 71, 79-81)

Management:

Yngve Slyngstad (items 73-87), Trond Grande (items 70-71, 73-87), Sirine Fodstad (item 73), Stephen Hirsch (items 74-75), Hege Gjerde (items 74, 80-81), Karsten Kallevig (items 76-79), Mie Holstad (items 76-78), Jan Thomsen (items 76-77), Lars Dahl (item 79), Dag Huse (items 79-86, 88), Lise Lindbäck (item 82), Merethe Riddervold (items 73-75, 80-86), John Tore Vatnar (items 82-86), Jane Haugland (items 70-71), Roger Rake (item 72), Gillean Dean Nordal (items 72-73), Olav Bø (item 88), Arne Osnes (item 88), Per Gunnar Bull Karlsen (item 88), Geir Guldahl (item 88), Torbjørn Hægeland (items 89-92), Kjetil Watne (item 89), Leif Veggum (items 90-92), Mads Kristensen (items 70-81, 88-90), Ingunn Valvatne (items 70-89), Runar Malkenes (items 78-81, 84-86), Andreas Andersen (items 88-92), Pål Haugerud (items 74-86), Bjarne Gulbrandsen (items 70-94)

There were no comments on the meeting notice and agenda.

Item 70/2018 Minutes of the Executive Board meeting of 11 April 2018

Discussion document:

• Draft minutes

The Executive Board approved the minutes of its meeting of 11 April 2018.

Item 71/2018 Audit report for Norges Bank for 2017 from Deloitte AS

Discussion documents:

• Memo from Corporate and Shared Services of 19 April 2018
• Memo from the Audit Committee of 24 April 2018

Henrik Woxholt from Deloitte presented the contents of the report.

Karen Helene Ulltveit-Moe reported on the Audit Committee's discussions. The Committee recommended that the Executive Board follow management's guidance.

The Executive Board took note of the audit report for Norges Bank for 2017 from Deloitte AS.

Item 72/2018 Application of the bonus scheme in Norges Bank's Central Banking Operations (NBCBO) in 2017

a. Report on the application of the bonus scheme in NBCBO in 2017

Discussion documents:

• Memo from Markets and ICT of 19 April 2018
• Memo from the Remuneration Committee of 24 April 2018

b. Independent statement on NBCBO's compliance with the general guidelines for remuneration laid down by the Executive Board

Discussion document:

• Memo from Internal Audit of 20 April 2018

Roger Rake introduced the matter for discussion. Gillean Nordal presented Internal Audit's control and statement on the application of the scheme.

Arne Hyttnes reported on the Remuneration Committee's discussions. The Committee recommended that the Executive Board follow management's guidance.

The Executive Board took note of the report on the application of the bonus scheme in NBCBO in 2017 and noted Internal Audit's statement that the report provides a true and fair view of its application. The Board also noted that the application of the scheme complies with the general guidelines issued by the Executive Board.

Item 73/2018 Application of the remuneration scheme in Norges Bank Investment Management (NBIM) in 2017

a. Annual report on the application of the remuneration scheme in NBIM in 2017

Discussion documents:

• Memo from NBIM of 18 April 2018
• Memo from the Remuneration Committee of 24 April 2018

b. Independent statement on NBIM's compliance with the remuneration regulation and the general guidelines for remuneration issued by the Executive Board

Discussion document:

• Memo from Internal Audit of 20 April 2018

Trond Grande introduced the matter for discussion. Gillean Nordal presented Internal Audit's control and statement on the application of the scheme.

Arne Hyttnes reported on the Remuneration Committee's discussions. The Committee recommended that the Executive Board follow management's guidance.

The Executive Board took note of the report on the application of the remuneration scheme in NBIM in 2017. The Executive Board noted Internal Audit's statement that the report provides a true and fair view of its application. The Executive Board also noted that the application of the scheme complies with the remuneration provisions in the mandate, the Financial Institutions Regulation and the general guidelines issued by the Executive Board.

Item 74/2018 NBIM operations report 2018 Q1

Discussion document:

• Memo from NBIM of 19 April 2018

Trond Grande presented the main elements of the report.

The Executive Board took note of NBIM operations report 2018 Q1.

Item 75/2018 NBIM compliance and control 2018 Q1

Discussion documents:

• Memo from NBIM of 19 April 2018
• Memo from the Audit Committee of 24 April 2018

Stephen Hirsch presented the main elements of the report.

Karen Helene Ulltveit-Moe reported on the Audit Committee's discussions and the issues of particular concern to the Committee. The Committee recommended that the Executive Board adopt the management's proposal.

The Executive Board took note of the report on compliance and control in NBIM for 2018 Q1.

Item 76/2018 Norges Bank Real Estate Management (NBREM) operations report 2018 Q1

Discussion document:

• Memo from NBREM of 13 April 2018

Mie Holstad presented the main elements of the report.

The Executive Board took note of the operations report for unlisted real estate management for 2018 Q1.

Item 77/2018 NBREM compliance and control 2018 Q1

Discussion documents:

• Memo from NBREM of 13 April 2018
• Memo from the Audit Committee of 24 April 2018

Jan Thomsen presented the main elements of the report.

Karen Helene Ulltveit-Moe reported on the Audit Committee's discussions and the issues of particular concern to the Committee, including workforce risk and the scope for attracting and retaining competent employees. The Committee recommended that the Executive Board adopt the management's proposal.

The Executive Board took note of the report on compliance and control for unlisted real estate investments for 2018 Q1.

Item 78/2018 NBREM - presence in Singapore

Discussion document:

• Memo from NBREM of 19 April 2018

Norges Bank Investment Management (NBIM) established an office in Singapore in 2010. Since 2014, NBREM has had employees at this office. In 2015, the subsidiary NBRE Management Singapore Pte Ltd was founded. Owing to changed prospects for large scale investment in unlisted real estate in Singapore, there is no longer the same need for a local presence.

Karsten Kallevig presented the matter for discussion.

The Executive Board discussed the matter and took note of the presentation on NBREM's presence at the Singapore office. The Executive Board approved the dissolution of NBRE Management Singapore Pte Ltd.

Item 79/2018 NBREM performance and risk 2018 Q1

Discussion documents:

• Memo from NBREM of 18 April 2018
• Memo from the Risk and Investment Committee of 24 April 2018

Lars Dahl presented the main elements of the report.

Egil Matsen reported on the discussions in the Risk and Investment Committee and the issues of particular concern to the Committee. The Committee discussed developments in Q1, including sales of real estate completed in Q1, the relationship between actual selling prices and the assessed value of the properties that were sold and the portfolio in general. The Committee recommended that the Executive Board adopt the management's proposal.

The Executive Board took note of the report on return and risk for unlisted real estate management for 2018 Q1.

Item 80/2018 NBIM return and risk 2018 Q1

Discussion documents:

• Memo from NBIM of 19 April 2018
• Memo from the Risk and Investment Committee of 24 April 2018

Yngve Slyngstad and Dag Huse presented the main elements of the report.

Egil Matsen reported on the Risk and Investment Committee's discussions and the issues of particular concern to the Committee, including the reporting structure for the investment strategies' performance, the relationship between listed and unlisted real estate and factor strategies. The Committee recommended that the Executive Board adopt the management's proposal.

The Executive Board took note of the report on return and risk for 2018 Q1.

Item 81/2018 GPFG -- Public report for 2018 Q1

Discussion documents:

• Memo from NBIM of 19 April 2018
• Memo from the Audit Committee of 24 April 2018

Yngve Slyngstad presented the main elements of the report.

Karen Helene Ulltveit-Moe reported on the Audit Commission's discussions and the issues of particular concern to the Committee. The Committee recommended that the Executive Board follow management's guidance.

Henrik Woxholt confirmed that nothing had come to Deloitte's attention during its review causing it to believe that the interim financial information had not in all material respects been prepared in accordance with relevant accounting standards.

The Executive Board approved the public report on the management of the Government Pension Fund Global (GPFG), including the interim financial reporting for the investment portfolio, for 2018 Q1.

Item 82/2018 Energy shares in the Government Pension Fund Global

Discussion documents:

• Memo from NBIM of 18 April 2018
• Memo from the Risk and Investment Committee of 24 April 2018

In the letter of 14 November 2017, Norges Bank recommended the removal of oil and gas stocks from the GPFG's benchmark index. In its letter of 13 February 2018, the Ministry of Finance requested that Norges Bank explain certain aspects of the advice given.

Yngve Slyngstad presented the draft response.

Egil Matsen reported on the Risk and Investment Committee's discussions and the issues of particular concern to the Committee. The Committee recommended that the Executive Board adopt the management's proposal.

The Executive Board discussed the matter and approved the submission of a letter to the Ministry of Finance based on the draft and the Executive Board's comments. The Governor was authorised to finalise the letter.

Item 83/2018 Council on Ethics recommendation of 1 March 2018 (1) on exclusion of companies

Discussion document:

• Memo from the Ownership Committee of 18 April 2018

Norges Bank has received a recommendation of 1 March 2018 from the Council on Ethics on exclusion of the company JBS S.A. The reason given for the recommendation is the risk that the company is responsible for gross corruption (see the conduct-based criterion in Section 3 e of Guidelines for observation and exclusion from the Government Pension Fund Global).

Egil Matsen reported on the Ownership's Committee's discussions and its recommendation.

The Executive Board concurred with the Ownership Committee's recommendation:

• JBS S.A. should be excluded from the Government Pension Fund Global's portfolio.
• The Ministry of Finance is to be informed of the decision.
• The exclusions enter into force on 1 July 2018. The Governor is authorised to grant exemptions from the deadline in situations with challenging liquidity or other special situations.
• The Governor is authorised to set a date for publishing the decision.

Item 84/2018 Council on Ethics recommendation of 1 March 2018 (2) on observation of a company

Discussion document:

• Memo from the Ownership Committee of 18 April 2018

Norges Bank has received from the Council on Ethics a recommendation of 1 March 2018 on observation of the company UPL Ltd. The reason given for the recommendation is the risk that the company is responsible for serious or systematic violations of human rights in the form of child labour (see the conduct-based criterion in Section 3a of Guidelines for observation and exclusion from the Government Pension Fund Global).

Egil Matsen reported on the Ownership Committee's discussions and its recommendation.

The Executive Board discussed the matter. In line with the Ownership Committee's position, the Executive Board is of the opinion that the exercise of ownership rights will be a better suited measure in this case and therefore the company is not to be placed under observation.

The Executive Board endorsed the Ownership Committee's position.

• NBIM is requested to have a particular focus on measures to combat child labour in its exercise of ownership rights with respect to UPL Ltd. over a period of five years.
• NBIM is asked to annually report to the Executive Board on the status of its ownership activities concerning the company.
• The Council on Ethics is to be informed of the decision.
• The Governor is authorised to set a date for publishing the decisions.

Item 85/2018 Recommendation from the Council on Ethics of 15 March 2018 on exclusion of a company

Discussion document:

• Memo from the Ownership Committee of 18 April 2018

Norges Bank has received a recommendation of 15 March 2018 from the Council on Ethics on exclusion of the company Lu Thai Textile Co. Ltd. The reason given for the recommendation is the risk that the company is responsible for serious or systematic human rights violations (see the conduct-based criterion in Section 3 a of Guidelines for observation and exclusion from the Government Pension Fund Global).

Egil Matsen reported on the Ownership Committee's discussions and its recommendation.

The Executive Board endorsed the Ownership Committee's position:

• Lu Thai Textile Co. Ltd. should be excluded from the Government Pension Fund Global's portfolio.
• The Ministry of Finance is to be informed of the decision.
• The exclusion enters into force on 1 July 2018. The Governor is authorised to grant exemptions from the deadline in situations with challenging liquidity or other special situations.
• The Governor is authorised to set a date for publishing the decision.

Item 86/2018 Guidelines for observation and exclusion – Conduct-based climate criterion

a. Guidelines for observation and exclusion – Conduct-based climate criterion

Discussion document:

• Memo from the Ownership Committee of 19 April 2018

b. Principles governing the selection of companies and formulation of recommendations

Discussion document:

• Memo from the General Secretariat of 24 April 2018

The conduct-based climate criterion in Section 3d of Guidelines for observation and exclusion from the Government Pension Fund Global,) was introduced in 2016. Norges Bank has received a recommendation on exclusion based on this criterion and application of the criterion has been on the agenda of meetings, including the meeting of 13 December 2017 between the Executive Board and the Council on Ethics.

Egil Matsen presented the matters for discussion and reported on the Ownership Committee's discussions.

The Executive Board discussed the matter and decided to send a letter to the Council on Ethics on the guidelines for observation and exclusion.

The Governor was authorised to finalise the letter based on the Executive Board's remarks.

Item 87/2018 Briefing on relevant matters for Norges Bank Investment Management

Yngve Slyngstad gave a briefing on relevant matters for Norges Bank Investment Management.

Item 88/2018 Financial risk and management of the foreign exchange reserves in 2018 Q1

Discussion documents:

• Memo from Markets and ICT of 19 April 2018
• Memo from the Risk and Investment Committee of 24 April 2018
• Memo from the Audit Committee of 24 April 2018

Olav Bø presented the main elements of the report.

Karen Helene Ulltveit-Moe and Egil Matsen reported on the discussions in the Audit Committee and the Risk and Investment Committee and the issues of particular concern to the committees. The committees recommended that the Executive Board follow management's guidance.

The Executive Board took note of the report on financial risk and management of the foreign exchange reserves for 2018 Q2. A public version of the report is to be published on Norges Bank's website on 4 May.

Item 89/2018 Annual Report 2017 – Norges Banks settlement system

Discussion document:

• Memo from Financial Stability of 5 April 2018

Kjetil Watne presented the main elements of the report, including the risk outlook and risk-reduction measures.

The Executive Board took note of the annual report on Norges Bank's settlement system for 2017.

Item 90/2018 Annual report on notes and coins for 2017

Discussion document:

• Memo from Financial Stability of 5 April 2018

Leif Veggum presented developments and the main elements of the report.

The Executive Board took note of the annual report on notes and coins for 2017.

Item 91/2018 Application for the commemorative coin issue in 2019 - Gustav Vigeland sesquicentenary

Discussion document:

• Memo from Financial Stability of 5 April 2018

Torbjørn Hægeland presented the matter for discussion.

The Executive Board discussed the matter and approved the issuance of a special edition 20-krone circulation coin to mark the sesquicentenary of Gustav Vigeland in 2019.

Item 92/2018 New guidelines on commemorative coins

Discussion document:

• Memo from Financial Stability of 16 April 2018

Torbjørn Hægeland presented the matter for discussion.

The Executive Board discussed the matter and approved the new guidelines on commemorative coin issues in accordance with the attachment to the matter for discussion. The Executive Board also decided to establish an advisory committee for commemorative coins issues.

The Executive Board authorised the Governor to:

• decide on adjustments to the guidelines on commemorative coin issues not of a principle nature,
• issue the mandate for and composition of the advisory committee,
• follow up the event list from the committee, including to decide coin issues and to refuse applications to issue coins, if necessary.

Item 93/2018 Briefing on relevant matters for Norges Bank Central Banking Operations

The Governor gave a briefing on relevant matters for Norges Bank Central Banking Operations.

Item 94/2018 Any other business

There was no other business.

The following were distributed for information together with the discussion documents:

• Real estate management – Application of approved investment structures for unlisted real estate in the US, Memo from NBREM of 19 April 2018
• Consultation on the Banking Law Commission's Report No. 31 on crisis management in the insurance and pension sector, Letter from Norges Bank to the Ministry of Finance of 18 April 2018.