Referring to the Q1 2016 interim report, BankNordik has decided to redeem its outstanding Tier 1 hybrid bond (ISIN DK0030278643) in the amount of DKK 180m and the Tier 2 subordinated bond (ISIN DK0030278726) in the amount of DKK 270m. The redemptions will take place on the 24th of June 2016.
Simultaneously, BankNordik has decided to issue new CRD IV compliant Tier 2 capital on the 24th of June 2016 in the amount of DKK 225m, following discussions with investors.
The new bonds will have a maturity of 10 years with first call after 5 years and quarterly interest payments in arrears. The coupon will be 5.0785% p.a., based on the 5-year fixed Danish swap rate plus the margin of 4.75% p.a. If the bonds are not redeemed on the 24th of June 2021, the interest rate will be reset based on the prevailing 3-months floating CIBOR rate plus the margin of 4.75% p.a.
Compared to the Bank’s capital ratios as of 31 March 2016, these transactions will have the following effects:
- CET1 ratio decreases by 0.2 percentage points to 14.2%.
- Core capital ratio decreases by 1 percentage point to 14.2%.
- Total capital ratio decreases by 1.4 percentage points to 15.8%.
The net annual interest expense savings resulting from the transactions will amount to approximately DKK 20m.
Further information:
Árni Ellefsen, CEO, tel. (+298) 230 348
BankNordik has banking activities in Denmark, Greenland and the Faroe Islands and insurance activities in the Faroe Islands and Iceland. Founded in the Faroe Islands more than a century ago, the Group total assets of DKK 16.2bn and 477 employees. The Bank is subject to the supervision of the Danish Financial Supervisory Authority and is listed on Nasdaq Iceland and Nasdaq Copenhagen. www.banknordik.com