Nordea completes a EUR 8.4bn corporate and SME loan securitisation

Nordea Bank AB (“Nordea”) has announced that it has entered into a synthetic
risk transfer trade related to EUR 8.4bn of Nordea’s loan portfolio. Under the
transaction, investors have agreed to invest in notes linked to the junior
credit risk of the portfolio.

- We have worked closely with several very experienced investors over a long
period of time and they have demonstrated their strong support in Nordea and our
processes and business models. Nordea believes that by adding a simple and
transparent synthetic securitisation to our risk and capital management toolbox,
we are better able to serve our customers going forward, says Tom Johannessen,
Head of Group Treasury and Asset Liability Management.

In contrast to an outright sale of loan portfolios, no assets will be
derecognised from Nordea’s balance sheet and Nordea will continue to service the
loans. Nordea will therefore maintain all of its customer relationships.

- The transaction reduces Nordea’s credit risks through a risk-sharing
structure, whilst enhancing Nordea’s CET1 ratio, allowing Nordea to recycle
freed-up capital into additional lending to corporations and SMEs, strengthening
Nordea’s role as the number one provider of credit to the Nordic economies, says
Jonas Bäcklund, Head of Credit Structuring and Execution, Treasury and Asset
Liability Management.

Under the agreement, the buyers of the notes are responsible for a pre-agreed
amount of incurred credit losses of the reference portfolio. The size of this
credit loss protection is sufficient to cover expected and unexpected losses,
relieving Nordea from the associated risks.

Nordea will at all times retain a share of each of the underlying loans in the
portfolio. The transaction is priced at an attractive cost of capital for
Nordea, which reflects the low credit risk associated with Nordic corporate
lending as well as a high degree of confidence in Nordea’s credit origination
and risk management processes by the investors.

The selected portfolio consists of approximately EUR 8.4bn in corporate and SME
loans from over 3,000 borrowers across Sweden and Denmark, spread across a wide
range of industries and asset classes. No specific industry class was targeted
for the transaction.

The transaction was arranged by joint structuring advisers Barclays, J.P. Morgan
and Nordea Markets.

Work on the transaction started formally during Q1 2015, with a mandate awarded
to the joint structuring advisers in July 2015.

For further information:
Tom Johannessen, Head of Nordea Group Treasury and Asset Liability Management,
+45 30 37 08 28
Jonas Bäcklund, Head of Credit Structuring and Execution, Treasury and Asset
Liability Management, +46 738666380
Rodney Alfvén, Head of Investor Relations, +46 10 15 62 960