SpareBank 1 SMN has received its Minimum Requirement for Own Funds and Eligible Liabilities (MREL)
SpareBank 1 SMN has received its MREL requirement from the Norwegian Financial Supervisory Authority (FSA). According to the notice, SpareBank 1 SMN shall hold total MREL capital equal to 34,8 per cent of an adjusted Risk Weighted Assets (RWA). The requirement is based on the group's balance as of 31. December 2019, and adjusting for the group's level of own funds, and convertible debt this leads to a requirement of eligible liabilities of NOK 27.223 million, of which 10.447 remains to be issued. SpareBank 1 SMN issued MNOK 1.000 in Senior Non-Preferred 02.09.2020.
The MREL requirement, according to the notice, is applicable from 1. January 2021. The requirement for eligible liabilities is applicable from 1. January 2024, and until this date may include Senior debt issued before 1 January 2020, with remaining duration of more than one year. It is required that convertible debt that is to be included shall be debt instruments with lower priority than ordinary, unsecured, unprioritized debt (senior debt), and that the debt shall be issued by the parent company in the group to external investors. The nominal net requirement of NOK 10.447 million could be adjusted due to changes in the regulatory capital requirement, group's balance structure or RWA. In addition, the implementation of BRRD2 in 2021 could affect the MREL requirement.
The Norwegian FSA has demanded a linear issuance of MREL Capital, as such that SpareBank1 SMN by 1. January 2022 should have issued a minimum of 1/3 of the MREL capital needed through 2021-2023.
For further information please contact:
CFO Kjell Fordal, tlf +47 905 41 672
CRO Ola Neråsen, tlf +47 918 09 722
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act