Pohjola Bank plc to Redeem Lower Tier 2 Subordinated Notes of USD 325 Million

Pohjola Bank plc
COMPANY RELEASE
Release category: Company Announcement
8 August  2011 at 2.00 pm Finnish time

Pohjola Bank plc to Redeem Lower Tier 2 Subordinated Notes of USD 325 Million

Pohjola Bank plc will redeem Lower Tier 2 subordinated notes of USD 325 million which it issued in September 2006. According to the terms and conditions, the notes will mature in 2016 but with the Finnish Financial Supervisory Authority's permission, the issuer has the right to call in the notes prematurely in September 2011. The notes are quoted on the London Stock Exchange. In December 2009, Pohjola Bank plc amortised USD 10 million of the notes with the Financial Supervisory Authority's permission, with the remaining amount standing at USD 315 million.  

Pohjola Bank plc has earlier announced an issue on 14 July 2011 of Lower Tier 2 subordinated notes of CHF 100 million.

On 30 June 2011, Pohjola Group's capital adequacy ratio stood at 12.2%, Tier 1 ratio at 12.2% and capital adequacy under the Act on the Supervision of Financial and Insurance Conglomerates at 1.59.

The redemption of the USD-denominated notes and the issue of the CHF-denominated notes mentioned above will decrease Pohjola Group's capital adequacy ratio (pro forma) and Tier 1 ratio by 1.2 percentage points and capital adequacy under the Act on the Supervision of Financial and Insurance Conglomerates by 0.13, in net terms.

Pohjola Bank Plc

Carina Geber-Teir
Chief Communications Officer

For more information, please contact:
Vesa Aho, CFO, tel. +358 (0)10 252 2336
Hanno Hirvinen, Executive Vice President, tel. +358 (0)10 252 2221
Tarja Ollilainen, Senior Vice President, Investor Relations, tel. +358 (0)10 252 4494


DISTRIBUTION
NASDAQ OMX Helsinki
London Stock Exchange
Swiss Exchange
Major media
op.fi and pohjola.fi