Carnegie plans to issue subordinated debt (lower Tier 2 capital)

In order to further support growth in the operations of the Carnegie Group and considering the future changes in the regulatory environment resulting from the proposed Basel II Accord, D. Carnegie & Co AB (publ) intends to seek interest among institutional fixed income investors for a subordinated debt issue (lower Tier 2 capital) of approximately EUR 50 million. The transaction is anticipated to be launched following investor marketing in the UK and continental Europe, subject to market conditions and final approval from the Board of Directors. As previously announced, the principles behind Carnegie’s dividend policy should remain intact, i.e. that excess capital above a desired and prudent level of regulatory capital should be distributed as dividends. It is the Board’s intention to substitute the current Tier 1 target with an overall capital adequacy target, thus enabling supplementary capital, in addition to primary capital, to form part of Carnegie’s capital base. The capital adequacy target in the new regulatory environment will be revised following the implementation of the Basel II Accord in Sweden during 2006. For further information, please contact Karin Forseke (CEO) +46 8 5886 90 10, Mats-Olof Ljungkvist (CFO) +46 8 5886 90 13 or Birgitta Henriksson (IR) +46 8 5886 86 39. This document is directed exclusively at persons who have professional experience in matters relating to investments or who are high network persons within article 12(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 and must not be acted or relied on by other persons in the United Kingdom. The securities described herein will be issued only to such persons. THE NOTES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT 1933, AS AMENDED (THE "SECURITIES ACT") AND THE NOTES WILL BE OFFERED AND SOLD ONLY OUTSIDE THE UNITED STATES IN COMPLIANCE WITH REGULATIONS UNDER THE SECURITIES ACT. NEITHER THIS DOCUMENT NOR ANY COPY OF IT IS FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY IN OR INTO THE UNITED STATES. THIS DOCUMENT IS NOT AN OFFER OF SECURITIES FOR SALE INTO THE UNITED STATES OR ELSEWHERE. THE SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES UNLESS THEY ARE REGISTERED OR EXEMPT FROM REGISTRATION. THERE WILL BE NO PUBLIC OFFER OF SECURITIES IN THE UNITED STATES.

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Carnegie is the leading and independent Nordic investment and private bank. Our operations within Corporate Finance, Securities, and Wealth Management are among the market leaders within their respective sectors. Together, they build an unbeatable combination of integrated knowledge, guiding our clients towards better business. Carnegie operates in seven countries and has approximately 650 employees.


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