The board of Swedbank has resolved to raise approximately SEK15 billion through a rights offering to strengthen its competitive position. The rights offering, which is fully underwritten and with pre-emptive rights for existing shareholders, is expected to improve the bank’s possibilities to successfully implement its strategy and remove over time the reliance on the government guarantee.
The main objective with the rights offering is to create flexibility for Swedbank to continue to support the bank’s existing as well as new customers on competitive terms, regardless of how markets develop. The rights offering also aims to reduce Swedbank’s reliance on the Government guarantee and accelerate Swedbank’s return to independent long-term financing on fully competitive terms.
Carl Eric Stålberg, chairman of Swedbank, said: With this capital raising we will strengthen Swedbank’s competitive position in our four home markets Sweden, Estonia, Latvia and Lithuania. The capital will also ensure the implementation of our strategy where we continue our focus on lowering the risk-level in the bank, improving the earnings capacity and managing our capital actively.
Michael Wolf, president and CEO of Swedbank, commented: We have taken firm actions aimed at reducing the risk level in the bank during the second quarter. As a result, we can now raise additional capital from a position of strength. With this rights issue we will be able to continue to keep our flexibility to support existing and new high quality clients in our home markets at competitive pricing levels. It will also help to accelerate Swedbank’s return to independent long-term financing on fully competitive terms and establish Swedbank as a well capitalised, strong and independent bank.
However, the rights offering is subject to approval at an extraordinary general meeting expected to be held on September 15.
