Alandsbanken starts consent solicitation for covered bonds due 2022

Chicago, Aug. 17 – Alandsbanken Abp announced the start of a consent solicitation for its SEK 2.5 billion floating-rate covered bond due 2022 (ISIN: SE0010598474), according to a press release.

The bank is soliciting consents in relation to a contemplated issue of a standalone covered bond with the bank as the initial issuer and then a subsequent transfer to Borgo AB as issuer at a later stage.

Alandsbanken is transferring its Swedish mortgage loans and SEK-denominated covered bonds to Borgo.

Specifically, the bank is soliciting consents on the existing notes to add a call option so that the bank can redeem all of the outstanding notes at any time before the maturity date at 100.8.

Voting noteholders will receive a consent fee of 0.3% of the principal amount of notes voted for by each noteholder.

The consent fee will be paid whether a holder votes for or against the amendment.

However, the payment of the fee is conditioned upon the proposal being approved by a majority of the noteholders and the early redemption of the notes under the new call condition.

Noteholders voting in favor of the proposal are eligible to receive priority allocation in the new bonds.

Nordea Bank Abp and Danske Bank A/S will act as joint lead managers and bookrunner for the new covered bond.

Nordea (nordealiabilitymanagement@nordea.com, +45 6161 2996) is acting as the tabulation agent and solicitation agent in connection with this procedure in writing.

Noteholders should return a voting form to Nordea by 6 a.m. ET on Sept. 1.

The record date is Aug. 25.

Results will be announced on Sept. 2.

With headquarters in Mariehamm, Aland Islands (Finland), the bank operates in Finland and Sweden.

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