BANK of Greenland Initiates New Capital Issue and Redemption
Capital Structure Optimization by the BANK of Greenland
The BANK of Greenland has made significant strides in optimizing its capital structure by agreeing to issue DKK 125 million in Senior Non-Preferred capital. This important initiative is closely managed by Nykredit Bank A/S, which is acting as the sole lead manager of the issuance, reflecting the bank's commitment to maintaining a robust financial foundation.
Details of the New Senior Non-Preferred Capital
The newly issued capital carries ISIN no. DK0030553375 and is set to take effect from 17 September 2025. With a maturity period of seven years, this capital includes a call option available after four years, contingent upon approval from the Danish Financial Supervisory Authority (Finanstilsynet). The bonds will feature a floating interest rate, calculated at six-month CIBOR plus 230 basis points. This floating rate arrangement offers flexibility that could be beneficial to the bank.
Early Redemption of Existing Capital
In addition to the issuance, the bank has announced the early redemption of DKK 50 million in Senior Non-Preferred capital, previously issued on 27 October 2021. This early redemption is aligned with the option that was granted at the time of issuance, allowing for a call four years post-issue. The scheduled redemption date for this capital is 27 October 2025. With the approval from the Danish Supervisory Authority (Finanstilsynet) secured, the process can proceed smoothly.
Contact Information for Inquiries
The bank encourages stakeholders and interested parties to reach out with any questions or concerns regarding these developments. Managing Director Martin Kviesgaard is available for inquiries and holds the contact number +299 34 78 02. For those preferring electronic communication, emails can be directed to mbk@banken.gl.
Frequently Asked Questions
What is the purpose of the new capital issuance?
The issuance aims to optimize the capital structure of the BANK of Greenland, enhancing its financial stability and operational flexibility.
Who manages the capital issuance?
Nykredit Bank A/S is the sole lead manager overseeing the capital issuance process.
What are the terms of the newly issued Senior Non-Preferred capital?
The new capital has a maturity of seven years, with a call option available after four years, and is tied to a floating interest rate based on the six-month CIBOR plus 230 basis points.
What does the early redemption entail?
The early redemption involves repaying DKK 50 million in Senior Non-Preferred capital that was originally issued in 2021, with the redemption date set for October 27, 2025.
Who can be contacted for further information?
Inquiries can be directed to Managing Director Martin Kviesgaard via phone or email, with all details provided for easy communication.
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