Eik Banki P/F - Fyrirtækjafréttir

Eik Bank Danmark A/S obtains nearly DKK 300 million in subordinated debt as hybrid core capital

Eik Bank Danmark A/S, the largest internetbank in Denmark, has applied for and
been approved by the Danish government to obtain subordinated debt issued as
hybrid core capital. 

The DKK 295.3 million loan will be issued on 30 June 2009. According to the
agreement, DKK 27.5 million may be converted into share capital. The effective
interest rate is 11.5 percent. 

Thereby, the Bank's solvency has been strengthened and is expected to be 16.4
percent as of 30 June. Core capital is 12.3 percent. 

Eik Bank Danmark A/S is the fully owned subsidiary of Eik Banki, which is
listed on Nasdaq OMX Nordic Exchange. Obtaining the subordinated debt
strengthens the Group solvency made up at end March 2009, by 1.8 percentage
points to 11.8 percent. 

The loan is of infinite maturity but may be repaid by the Bank at par in the
period 1 July 2012 to 30 June 2014, and at price 105 no later than 30 June
2015. Hereafter, the Bank may repay the loan at the price of 110. 

Facts
Eik Banki is listed on Nasdaq OMX Nordic Exchange and runs banking business in
Denmark and in the Faroe Islands. At the end of the first quarter, Group
balance was DKK 21.9 billion and equity was DKK 1.7 billion. Eik Banki Group
has 330 full time equivalent employees of which approximately 100 work in
Denmark. 

Sincerely



Marner Jacobsen		Finn Danberg
Group CEO			Director, Group CFO

Attachments:

stock exchange announcement 14_2009.pdf

250609_press_release.pdf