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SpareBank 1 Nord-Norge has received its Minimum Requirement for Own Funds and Eligible Liabilities (MREL)

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SpareBank 1 Nord-Norge has received its MREL requirement from the Norwegian Financial Supervisory Authority (FSA). According to the notice, SpareBank 1 Nord-Norge shall hold total MREL capital equal to 34 per cent of an adjusted Risk Weighted Assets (RWA). The requirement is based on the group's balance as of 31. December 2019, and adjusting for the group's level of own funds, and convertible debt this leads to a requirement of eligible liabilities of NOK 19 112 million, of which 7 018 remains to be issued.

The MREL requirement, according to the notice, is applicable from 1. January 2021. The requirement for eligible liabilities is applicable from 1. January 2024, and until this date may include Senior debt issued before 1 January 2020, with remaining duration of more than one year. It is required that convertible debt that is to be included shall be debt instruments with lower priority than ordinary, unsecured, unprioritized debt (senior debt), and that the debt shall be issued by the parent company in the group to external investors. The nominal net requirement of NOK 7 108 million could be adjusted due to changes in the regulatory capital requirement, group's balance structure or RWA. In addition, the implementation of BRRD2 in 2021 could affect the MREL requirement.

The Norwegian FSA has demanded a linear issuance of MREL Capital, as such that SpareBank1 Nord-Norge by 1. January 2022 should have issued a minimum of 1/3 of the MREL capital needed through 2021-2023.

For further information please contact:

  • Head of Treasury Ronny Løvberg Sørensen, tel 971 05 220
  • CFO Bengt Olsen, tel 975 89 560
  • CRO Marius Nilsen, tel 416 20 532

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

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