BankNordik P/F - Company Announcement

BankNordik strengthens the capital by DKK 600 million

BankNordik has today completed a successful subscription of hybrid core capital
and subordinated loan capital in connection with the agreed acquisition of the
healthy parts of Amagerbanken. In this connection BankNordik changes the
dividend policy. 

BankNordik has strengthened its already strong capital base through the
subscription of bonds of DKK 600 million. The bonds have the status of hybrid
core capital or subordinated loan capital and are thus included in the bank's
total capital. 

BankNordik had a solvency ratio of 17% at the end of the first quarter of 2011.
Following the acquisition of the healthy parts of Amagerbanken and the related
capital increase the solvency ratio is expected to be above 15%, while the core
capital ratio is expected to be 12.4%. "We are pleased with the support from a wide range of professional investors to
our acquisition of Amagerbanken. We noted the endorsement prior to our decision
to acquire Amagerbanken, and today it is confirmed in a solid subscription of
the offered bonds. We are confident that BankNordik has made a good investment,
and the subscription shows that investors share this assessment. We will do our
best to demonstrate we made the right decision," says Janus Petersen, CEO of
BankNordik. 

The bank issues bonds with the status of hybrid core capital for a total
nominal value of DKK 180 million (ISIN DK0030278643). These bonds are
perpetual, but may be redeemed by BankNordik at par the first time 24 June 2016
and every following quarter. During the first five years the bonds carry a
fixed interest rate determined by the five-year swap rate in Danish kroner 21
June 2011 plus 7.5% per annum. After five years the rate will change to a
floating rate of 3 months Cibor plus 7.5% per annum. 


In addition bonds for a total nominal value of DKK 420 million will be issued
with the status of subordinated loan capital (ISIN DK0030278726). These bonds
have a maturity of 10 years, but may be redeemed by BankNordik at par the first
time 24 June 2016 and every following quarter. During the first five years the
bonds carry a fixed interest rate determined by the five-year swap rate in
Danish kroner 21 June 2011 plus 5.5% per annum. After five years the interest
rate will change to a floating rate of 3 months Cibor plus 5.5% per annum and
an additional step-up rate of 1.5% provided this complies with the regulation
at that time. 

Both categories of bonds are issued by 24 June 2011. Presently, trading on a
regulated market is not applied for, but the bank intends to file for a listing
on NASDAQ OMX in the third quarter of 2011. The issuance is in accordance with
the Basel III regulations. 

Of the newly subscribed subordinated loan capital Amagerbanken af 2011 A/S (a
company under the control of Financial Stability) has subscribed for an amount
of DKK 300 million, cf. the agreement regarding the acquisition of
Amagerbanken. The majority of the remaining bonds are subscribed by a number of
Danish and Faroese institutional investors. Nykredit Markets offered and sold
the bonds on behalf of BankNordik. 

Initially BankNordik intended to issue bonds for DKK 550 million, but the bank
has decided to honour a larger demand by increasing the issue to DKK 600
million. 


In its public announcement on 18 May 2011 of the agreement with Financial
Stability about the acquisition of the healthy parts of Amagerbanken BankNordik
informed that the increased business volume would be accompanied by a
strengthening of the bank's capital base, as it has been and remains a part of
the bank's strategy to have a strong capital base and robust liquidity. At that
time the bank had already had a positive dialogue with selected institutional
investors about the investment in Amagerbanken and a planned expansion of the
bank's capital base. 

In connection with the issuance of the bonds, the bank has decided to limit its
dividend payments to 10% of the annual net profit, but no more than DKK 10
million annually, as long as the core capital ratio, excluding hybrid core
capital, is less than 10%. Following the acquisition of Amagerbanken
BankNordik's capital ratio excluding hybrid core capital is expected to be
9.6%. The Bank will reassess its dividend policy when the core capital ratio
excluding hybrid core capital has reached 10 again, or when the newly
subscribed hybrid core capital may be redeemed. 

With the acquisition of the healthy parts of Amagerbanken BankNordik gets about
90,000 new customers. Following the acquisition, BankNordik will have a deposit
surplus exceeding DKK 1.6 billion. At the same time the bank's geographical and
industrial diversification is improved. 

The acquisition of the healthy parts of Amagerbanken is expected to be closed
within a short period of time. 


Additional information:
Janus Petersen, CEO, Tel: (+298) 330 340


BankNordik was founded over 100 years ago in the Faroe Islands. The Group has
banking activities in Denmark and Greenland and the Faroe Islands and insurance
activities on the Faroe Islands and Iceland. After the acquisition of
Amagerbanken the bank will have assets of DKK 20 billion and 630 employees. The
Bank is subject to the Danish Financial Services Authority and participating in
the Danish deposit guarantee fund. BankNordik is listed on NASDAQ OMX
Copenhagen.