Application for capital injection from the Norwegian State Finance Fund

Thu, Aug 20, 2009 12:46 CET

SpareBank 1 SR-Bank has decided to submit an application to the Norwegian State Finance Fund for an injection of core capital in the form of hybrid instruments of up to NOK 1.6 billion and preferred capital of up to NOK 0.8 billion. The final decision on an injection of capital is subject to the negotiation of acceptable terms with the Fund.

The reason for the application is to strengthen the bank's financial soundness and facilitate continued normal lending activities. At end of the second quarter of 2009, SpareBank 1 SR-Bank (group) had a core capital adequacy ratio of 7.0 per cent and a capital adequacy ratio of 9.5 per cent. The Board has resolved to increase the core capital adequacy ratio to a minimum of 9 per cent. An injection of capital from the Finance Fund will help achieve the core capital adequacy ratio target, strengthen the bank's financial soundness and facilitate normal lending activities also when the demand for loans rebounds.

Stavanger, 20 August 2009

Contact persons in SpareBank 1 SR-Bank:

CEO Terje Vareberg, tel.: +47 911 00 448

Chief Financial Officer Erling Øverland, tel.: +47 915 56 542

Director Capital Markets Stian Helgøy, tel.: +47 906 52 173

Investor Relations Manager Kyrre M. Knudsen, tel.: +47 938 83 518

Application for capital injection from the Norwegian State Finance Fund

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