BankNordik P/F - Company Announcement

BankNordik repays loans before due date

Government guaranteed loans on DKK 900m to be repaid before due date

Based on a satisfactory liquidity level, significantly above statutory
requirements, BankNordik intends repay a substantial part of loans totaling DKK
2.2bn before the due date. These loans were taken in the years 2009 and 2010. 

On 4 January, the Bank announced that DKK 0.2bn would be repaid by 2 February,
2011. It has now been decided to cancel repurchased bonds on the amount of
further 0.9bn, leading to DKK 1.1bn remaining unpaid of the original state
guaranteed loan on DKK 2.2bn from a total guarantee assurance of DKK 4.0bn.The
guarantee fee to the Danish state constitutes 0,95% p.a. of the guaranteed
amount. 

The loans are as follows:

  --  DKK 500m of ISIN DK0030221536 Føroya Banki 2012  (total emission DKK 500m)
  --  DKK 400m of ISIN DK0030239660 Føroya Banki 2013  (total emission DKK 500m)

”Like most banks, we wanted to insure the Bank's liquidity during the financial
crisis. We have a sufficient liquidity and a healthy balance composition, and
the prospects are also assuring. On this basis, we have the opportunity to
repay our loans before the due date, and by doing so, save interest and
guarantee fees,” says Janus Petersen, CEO of the BankNordik Group, one of the
best consolidated banks in Northern Europe. 

BankNordik was founded more than 100 years ago on the Faroe Islands. The
BankNordik Group operates banking activities in Greenland, Denmark and on the
Faroe Islands, as well as insurance activities in Iceland and on the Faroe
Islands. In Q3 2010 the Bank had a total balance of DKK 15.8bn. The Bank has
more than 450 employees. In 2007 the Bank was listed on the on the NASDAQ OMX
stock exchange in Copenhagen, where it is currently among the 10 largest banks
measured on market value and sixth largest measured on balance. BankNordik is
subjected to the Danish Financial Supervisory Authority and participates in the
Danish Deposit Guarantee Fond. 




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