NONG - SpareBank 1 Nord-Norge strengthens its equity
The Main Board of Directors of SpareBank 1 Nord-Norge proposes an equity issue
of up to NOK 600 million by means of:
* A guaranteed rights issue towards existing equity certificate holders of NOK
450 million
* A private placement of up to NOK 150 million
The background to the proposal to strengthen the equity is as follows:
* New international regulations for capital adequacy significantly alter the
calculation of - and minimum requirements for - bank solidity. SpareBank 1
Nord-Norge wishes at an early stage to ensure that the group's capital
adequacy is in accordance with the new regulations.
* The bank wishes to confirm its position of being undisputedly solid
The planned issues will increase the group's core capital adequacy by
approximately 1.3 percentage points, compared with 31.12.2010.
The rights issue is guaranteed by a consortium consisting of SpareBank 1 SMN,
SpareBank 1 SR-Bank, Sparebanken Hedmark and Samarbeidende Sparebanker AS.
The plan is that the private placement of up to NOK 150 million will mainly be
towards Sparebankstiftelsen SpareBank 1 Nord-Norge and the group's employees and
members of the the Main Board of Director and the regional Boards of Directors.
Sparebankstiftelsen SpareBank 1 Nord-Norge is a charitable foundation that is in
the process of being established. The main purpose of the foundation is to be a
long-term and stable owner of SpareBank 1 Nord-Norge.
The private placement towards Sparebankstiftelsen will be on market terms. The
private placement towards employees and members of the the Main Board of
Director and the regional Boards of Directors, will be at a discount, and will
further be subject to a lock-in period before onward sale, in line with previous
sales of equity capital certificates to the aforesaid.
SpareBank 1 Nord-Norge will also carry out a bonus issue and a split of the
bank's equity capital certificates. Refererence is made to the release
published on 9.2.2011 regarding publication of the group's provisional accounts
for 2010.
Arctic Securities and SpareBank 1 Markets represented by Argo Securities and
SpareBank 1 Nord-Norge Markets are arrangers of the above transactions.
Provisional time schedule:
29 and 30 March 2011:Â Â Â Â Â Â Â Â Â Â Â Â Supervisory Board meetings
30 March 2011: Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â The Bank's equity capital certificates
trade ex dividend
31 March 2011:                        The Bank's equity capital trade ex  right
to allotment of new equity capital certificates in the bonus issue
5 April 2011:                            The bonus issue  and the split is
completed in VPS
5 May 2011:Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Pricing and other terms in the rights
issue and the private placement is decided
6 May 2011:Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â The equity capital certificates trade
 ex rights in the rights issue
12-26 May 2011:Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Subscription period and trading of
subscription rights on the Oslo Stock Exchange
31 May 2011:Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Allotment of new equity capital
certificates in the rights issue
7 June 2011:Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Listing of the new equity capital
certificates from the rights issue on the Oslo Stock Exchange
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
SNN strengthens its equity:
http://hugin.info/147/R/1493373/429220.doc
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Source: SpareBank 1 Nord-Norge via Thomson Reuters ONE
[HUG#1493373]