Printer Friendly

NORWEGIAN GOVERNMENT AND REALKREDITT GIVE DEN NORSKE BANK 5.9 BILLION KRONER IN NEW CORE CAPITAL

 NORWEGIAN GOVERNMENT AND REALKREDITT GIVE DEN NORSKE BANK
 5.9 BILLION KRONER IN NEW CORE CAPITAL
 OSLO, Norway, Dec. 2 /PRNewswire/ -- Den norske Bank announced today that it is to receive an injection of Norwegian Kroner (NK) 5.9 billion in new core capital from the government and from private investors, boosting its capital ratio to around 8 per cent from the end of the year. The scheme, a result of negotiations between Den norske Bank, Realkreditt, the Government Bank Investment Fund and the Government Bank Insurance Fund, has been approved by Norges Bank.
 The capital infusion is conditional on a write-down of Den norske Bank's current share capital by reducing the nominal value of the shares from NK 100 to NK 10, and on the bank's acquisition of Realkreditt.
 Private and government participation in the capital increase Den norske Bank will purchase the shares of Realkreditt Holding AS for around NK 250 million. The seven largest owners in Realkreditt have agreed to take part in the bank's share capital increase and underwrite a total of NK 950 million of the issue, of which NK 250 million represents new, ordinary share capital. NK 700 million represents an underwriting commitment for new preference share capital.
 The public share issue will be fully underwritten by the Government Bank Investment Fund for NK 1,675 million, which will guarantee full subscription.
 The holders of ordinary shares will have preferential rights to subscribe for preference shares. The preference shares will be entitled to the same dividend and voting rights as ordinary shares, and will rank above ordinary share capital, NK 939 million in preference capital from the Commercial Banks' Guarantee Fund and NK 1,250 million in preference capital from the Government Bank Insurance Fund.
 The preference share capital of NK 700 million will be converted to ordinary shares no later than at the date of approval of the bank's annual accounts for 1993.
 Realkreditt
 Realkreditt is one of Norway's largest mortgage institutions, extending long-term housing and commercial loans.
 The seven largest owners of Realkreditt are Kommunal Landpensjonskasse, Vital Forsikring AS, Christiania Bank og Kreditkasse, Folketrygdfondet, UNI Storebrand AS, Oslo Bolig og Sparelag and Romsdals Fellesbank AS.
 The bank and the seven owners of Realkreditt operate under the assumption that the authorities will make the decisions necessary to implement the agreement.
 Den norske Bank will make a thorough review of Realkreditt for the purpose of estimating the value of the Realkreditt Group. The review may result in a reduction in the purchase price. In that case, the issue of ordinary shares directed towards Realkreditt's shareholders will be adjusted correspondingly.
 Den norske Bank aims to continue to carry out Realkreditt's operations.
 Preference capital from the Government Bank Insurance Fund Den norske Bank has entered into an agreement with the Government Bank Insurance Fund for an injection of preference capital of NK 3,250 million. Of this, NK 1,250 million will rank above the ordinary share capital and the preference capital of NK 939 million from the Commercial Banks' Guarantee Fund. NK 2,000 million will rank above all other share and preference capital.
 The preference capital from the Government Bank Insurance Fund is interest free, but should yield a return corresponding to the dividend paid on Den norske Bank's share capital.
 The Government Bank Insurance Fund has the authority to demand the conversion of the preference capital to share capital.
 Den norske Bank has the right to fully or partly redeem that part of the capital which is to be converted.
 The board of directors of Den norske Bank has informed the Government Bank Insurance Fund that the shareholder-elected board members will put their seats up for re-election. The election of new board members must be approved by the Government Bank Insurance Fund.
 The agreements concerning the share capital increase will be presented at an extraordinary general meeting to be held in the course of December.
 -0- 12/2/91
 /CONTACT: Jarl Veggan of Den norske Bank, in Oslo: 47-2-481691/ CO: Den norske Bank ST: IN: FIN SU:


TS -- NY008 -- 8167 12/02/91 07:22 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 2, 1991
Words:683
Previous Article:SNO COUNTRY REPORTS OFFICIAL SKI REPORT
Next Article:NEW DRUG SIGNIFICANTLY REDUCES THE RISK OF STROKE -- NATION'S THIRD LEADING CAUSE OF DEATH
Topics:


Related Articles
DEN NORSKE BANK ANNOUNCES NET LOSS FOLLOWING HEAVY LOAN LOSSES
IMPROVED RESULTS, BUT DEN NORSKE LOAN LOSSES REMAIN HIGH
TURMOIL IN MONEY AND SECURITIES MARKETS IMPAIRS DEN NORSKE BANK THIRD QUARTER RESULTS
DEN NORSKE BANK ANNOUNCES PRELIMINARY ACCOUNTING FIGURES FOR 1992
IMPROVED PERFORMANCE BUT LOAN LOSSES STILL HIGH SAYS DEN NORSKE BANK
PROFITS OF 720 MILLION KRONER FOR DEN NORSKE BANK SO FAR THIS YEAR
PROFITS OF NOK 982M FOR DEN NORSKE BANK IN 1993
RECORD PROFITS FOR DEN NORSKE BANK
DEN NORSKE BANK REPORTS NET PROFITS OF NOK 1.7 BILLION
HEALTHY 1995 PROFITS FOR DEN NORSKE BANK

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters