Saxo Bank, a leading online trading and investment specialist, has strengthened its capital base by issuing Convertible Tier 2 Notes in exchange for €46.25 million ($49.6 million) and by issuing new equity capital in the amount of €31.25 million.

CarVal Investors, a leading global investment fund manager with more than $10 billion under management, became note owners when investing in the Convertible Tier 2 and minority shareholders after subscribing shares equal to 2.5 per cent of the share capital before this issue, said a statement.

In a joint statement, Kim Fournais and Lars Seier Christensen, co-chief executive officers and co-founders of Saxo Bank, said: “In the process of exploring opportunities in the market, we found a combination which allows us to both issue additional capital and raise equity capital which will benefit the Bank, the shareholders, investors and clients.

“This framework enables Saxo Bank to not only meet potential future capital requirements, but also to consolidate our market position as a solid industry player. The investment is testament to the trust in the bank’s ability to capitalise on significant growth opportunities. We welcome CarVal Investors as new shareholders and note owners.”

The Tier 2 instrument will fulfil the new European capital regulations and is subject to conversion into ordinary shares if the common equity tier 1 ratio in the Saxo Bank Group and/or Saxo Bank A/S falls below seven per cent, said the statement.

Following the issues, Saxo Bank and Saxo Bank Group’s regulatory capital ratio are 22.8 per cent and 19 per cent respectively, while the estimated solvency need is 13.8 per cent and 12.8 per cent respectively, it added. - TradeArabia News Service