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Norwegian Finans Holding ASA: Updated MREL requirement for Norwegian Finans Holding ASA

Norwegian Finans Holding ASA
·2-min read

Norwegian Finans Holding ASA has received an updated MREL requirement according to Financial Institutions Act 2015 (Finansforetaksloven) §20-9, cf. §20-25 from the Norwegian Financial Supervisory Authority (FSA). Norwegian Finans Holding ASA shall hold total MREL capital equal to 39.02 % of adjusted risk weighted assets. The requirement shall be fulfilled by 1.1.2021. The level of the requirement is as expected, and, as previously announced, the bank expects to be compliant with the requirement without issuing any additional MREL-eligible capital in 2020.

The MREL eligible capital shall be issued by Norwegian Finans Holding ASA, where the subordination requirement shall be fulfilled by the end of the phase-in period on 1.1.2024. The updated requirement has a changed phase-in structure compared to the previous requirement. The senior preferred debt issued by Bank Norwegian AS with a minimum remaining tenor of 1 year, irrespective of the date of issue, will qualify as MREL capital until the end of the phase-in period, with a linear phase-in. The previous requirement that senior preferred debt issued by Bank Norwegian AS had to be issued prior to 31.12.2019 to be eligible, has as such been lifted.

As previously announced, an application process to the Norwegian FSA regarding approval to initiate a merger process between Norwegian Finans Holding ASA and Bank Norwegian AS is ongoing, with the ultimate goal of issuing all MREL eligible capital from the combined, operating entity going forward.

The company shall deliver an updated MREL plan to the Norwegian FSA within 31.03.2021 on how to fulfill the requirement going forward.

Contact persons:

CFO Klara Lise Aasen; phone +47 47635583;

Head of Treasury Mats Benserud; phone +47 95891539;

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act