Gjensidige Bank: Successful placement of tier 1 and tier 2 capital

Reference is made to stock exchange release of 11 March 2015 regarding the board’s decision to propose to the annual general meeting to authorize the issuance of tier 2 (subordinated bond) and tier 1 (fondsobligasjon) capital, both with floating rate and optional redemption.

Gjensidige Bank ASA today issued a subordinated bond with a par value of NOK 100 million, with a coupon rate of 3M NIBOR + 1.65 percent, with payment date 21 May 2015. The subordinated bond has a 10 year duration with optional redemption no earlier than 22 May 2020.

Furthermore the bank issued a tier 1 “fondsobligasjon” with a par value of NOK 150 million, with a coupon rate of 3M NIBOR + 3.15 percent and payment date 21 May 2015. The tier 1 bond is perpetual, with optional redemption no earlier than 22 May 2020.

The purpose of the debt issuance is to strengthen the bank’s capital adequacy. The Financial Supervisory Authority of Norway has approved the debt issuances.

The tier 2 subordinated bond will count as supplementary capital and the tier 1 fondsobligasjon will count as core tier 1 capital. Gjensidige Bank will apply for listing of both bonds at Nordic ABM.

Facilitators were DNB Markets and Nordea markets.

This information is subject to disclosure under the Norwegian Securities Act section §5-12.

Head of Treasury, Tor Egil Nedrebø,  47 40 62 53 67