The Danish Financial Supervisory Authority
NASDAQ OMX Copenhagen
London Stock Exchange
Oslo Børs
28 June 2012
Implementation of the capital plan
Today vestjyskBANK has implemented the remaining elements in the bank’s capital plan that was announced by the bank in company announcement of 25 January 2012.
- Contribution of subordinated loan capital of DKK 200 million completed.
- Sale of sector shares at a total value of DKK 175 million completed.
- Final undertaking from the Danish Financial Stability Company concerning new individual state guarantees obtained.
Thus, vestjyskBANK has completed the sale of sector shares at a total value of DKK 175 million to the Danish Central Bank and raised subordinated loan capital in the amount of DKK 200 million from a group of banks consisting of Arbejdernes Landsbank, Danske Bank, FIH Erhvervsbank, Jyske Bank, Nordea Bank Danmark, Nykredit Bank, Spar Nord Bank, Sydbank and a number of local banks.[1]
The sale of the sector shares and the raising of the subordinated loan capital contribute towards strengthening the bank’s solvency.
Moreover, vestjyskBANK has today obtained a final binding undertaking from the Danish Financial Stability Company concerning new individual state guarantees at a total amount of up to DKK 6.8 billion with a maturity of up to 3 years from the expiry of the current state guarantees. As announced on 4 June and 7 June 2012, respectively, vestjyskBANK has performed early redemption of state-guaranteed bond loans totalling DKK 1.8 billion. The final binding undertaking therefore is reduced from DKK 8.6 billion to DKK 6.8 billion.
The final binding undertaking is subject to a number of terms, e.g.
- that vestjyskBANK undertakes currently to reduce the guaranteed obligations and in this regard to decrease the guarantee undertaking to DKK 5 billion on 31 December 2013, DKK 3 billion on 31 December 2014 and DKK 2 billion on 31 December 2015 with final settlement on 30 June 2016; and
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that vestjyskBANK as long as there are outstanding guaranteed obligations cannot
- perform capital reductions where the amount is paid to the shareholders, introduce new buy-back programmes for own shares, issue bonus shares at a favourable price or introduce other similar favourable schemes, except for the full or partial buy-back of the state’s shares in connection with the payment of a state-funded capital injection in vestjyskBANK;
- pay dividend; or
- initiate new share option schemes or similar schemes for the executive board.
With the introduction of the above-mentioned measures as well as the conversion of the state-funded capital injection in February 2012, the merger with Aarhus Lokalbank in March of 2012 and the rights issue in May 2012, vestjyskBANK has implemented the capital plan announced by the bank on 19 January 2012.
Please contact Frank Kristensen, CEO, at tel.no. +45 96 63 21 01, or Michael T. Madsen, HR and Communication Director, at tel.no. +45 96 63 21 16, if you have any questions or queries relating to this company announcement.
vestjyskBANK
Frank Kristensen
CEO
fk@vestjyskbank.dk
Vestjysk Bank A/S
Torvet 4-5
DK-7620 Lemvig
Denmark
Phone +45 96 63 20 00
CVR no. 34631328
www.vestjyskbank.dk
[1] Sparekassen Vendsyssel, Sparekassen Hobro, Sparekassen Kronjylland, Den Jyske Sparekasse, Sparekassen Sjælland, Sparekassen Thy, Lån og Sparbank, Ringkjøbing Landbobank, Nørresundby Bank, Nordjyske Bank, Djurslands Bank and Sparekassen Himmerland.
