SEB announces two measures, the combined purpose of which is to increase the core tier 1 ratio and to reduce the capital ratio volatility.
The first measure is to offer the holders of SEB's two USD denominated capital contribution securities with first call dates in March 2014 and March 2015 respectively, to sell these at an agreed price. The price level will be determined during the tender process, which will last for 20 days. The outstanding amount is in total USD 1,100 million.
The second capital action is the announced intention to issue non-innovative EUR denominated capital contribution securities.
As a consequence, SEB will record a capital gain yet to be determined since the price and amount of repurchased securities will not be known until the tender process has been completed.
The core tier 1 capital will increase with the capital gain. The net effect on the tier 1 ratio will be neutral to positive and the currency matching of risk-weighted assets and the capital base better aligned.
At the end of June 2009, the core tier 1 ratio was 11.3 per cent and the tier 1 ratio 13.1 per cent applying Basel II without transitional rules.
The capital action shall be seen in light of SEB's strategy to be well-capitalised and upgrade the quality of capital.
SEB is a North European financial group serving some 400,000 corporate customers and institutions and five million private individuals. SEB offers universal banking services in Sweden, Germany and the Baltic countries - Estonia, Latvia and Lithuania. It also has local presence in the other Nordic countries, Poland, Ukraine and Russia and a global presence through its international network in major financial centers. On 30 June 2009, the Group's total assets amounted to SEK 2,374bn (~EUR 220bn) while its assets under management totalled SEK 1,267bn (~EUR 120bn).The Group has about 20,500 employees. Read more about SEB at www.sebgroup.com
For further information, please contact:
Ulf Grunnesjö, Head of Investor Relations, +46-70 763 85 01
Viveka Hirdman-Ryrberg, Head of Communications, +46 70-550 35 00