Føroya Banki P/F - Company Announcement

- Føroya Banki has concluded an agreement with the Danish Govern-ment on capital injection of hybrid core capital

On September 21 2009, Føroya Banki has concluded an agreement with the Danish
Government on capital injection of hybrid core capital totaling to DKK
204.138.150. 

The capital injection further strengthens Føroya Banki's capital base. 

As a result of the capital injection, Føroya Banki's solvency ratio is
increased from 22,06 % to 25,06 %, while the core capital ratio is enhanced
from 22,24 % to 25,24 %. 
Pursuant to the agreement Føroya Banki on 24 September 2009 will receive
pay-ment for subordinated notes to the Danish Government corresponding to a
total loan of DKK 204.138.150 at a nominal interest rate of 10,295031 % per
annum, corresponding to an effective interest rate of 10,560 % per annum. 




Further information:
Janus Petersen, CEO, tel. (+298) 330 340