NONG - SpareBank 1 Nord-Norge strengthens its equity base

The Main Board of Directors of SpareBank 1 Nord-Norge proposes a rights issue of NOK 750 million towardsExisting equity certificate holders. In addition, private placements of up to NOK 200 million is contemplated, utilising the existing authorisation from the Supervisory Board of SpareBank 1 Nord-Norge of NOK 320 million.

SpareBank 1 Nord-Norge has implemented various measures to strengthen the banks solidity, and will continue to do so. Some of these measures are;

  • various measures to increase profitability, including increased interest margins
  • reduced dividend level
  • reduced lending growth, especially in the corporate segment   
  • submitted application to use IRBA for calculating minimum capital requirements
  • measures to increase capital efficiency
  • sale of shares in SpareBank 1 Oslo Akershus 


The background for the proposal to strengthen the equity base is to meet future capital requirements and toparticipate in the profitable growth in the northern part of Norway.

The planned equity issues will increase the group's core capital adequacy of up to 1.7 percentage points, compared to 30 June 2013.

The rights issue is guaranteed by a consortium consisting of SpareBank 1 SMN, SpareBank 1 SR-bank, Sparebanken Hedmark, Samspar and Sparebankstiftelsen SpareBank 1 Nord-Norge.

The private placements of up to NOK 200 million will be directed towards Sparebankstiftelsen SpareBank 1 Nord-Norge, prospective institutional investors and the bank's employees, the members of the Main Board of Directors and the regional Boards of Directors.

The private placement towards Sparebankstiftelsen and prospective institutional investors will be at market terms. 

The private placement towards employees, the members of the Main Board of Directors and the regional Boards of Directors, will be at a discount, and will be subject to a lock-up period, in line with previous sales of equity capital certificates to the aforementioned parties.

Arctic Securities, SpareBank 1 Markets and SpareBank 1 Nord-Norge Markets are managers of the above transactions.

Tentative time schedule:

9 September 2013: Supervisory Board meetings to approve the main board of directors' suggested terms for the equity issues

10 September 2013: The equity certificates are listed exclusive subscription rights

13 - 27 September 2013: Subscription period and trade in subscription rights on the Oslo Stock Exchange

~8 October 2013: Allocation of new equity certificates in the rights issue and the employee issue

~10 October 2013: Registration with the Norwegian Register of Business Enterprises and delivery of the new equity certificates 

~11 October 2013: Listing of the new equity certificates from the rights issue and the employee issue on the Oslo Stock Exchange


Contact persons at SpareBank 1 Nord-Norge:

CEO  Jan-Frode Jansen; mob + 47 909 75 183

CFO  Rolf Eigil Bygdnes; mob +47 905 19 774

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

About Us

SpareBank 1 Nord-Norge is a leading provider of financial products and services in North-Norway. In addition to loans, deposits and payment transmission services, this also comprises most other savings products, as well as life- and non-life insurance products. Services and products are made available either by the bank and its subsidiaries, or through SpareBank 1 Gruppen AS's product companies.