In order to further support growth in the operations of the Carnegie Group and considering the future changes in the regulatory environment resulting from the proposed Basel II Accord, D. Carnegie & Co AB (publ) intends to seek interest among institutional fixed income investors for a subordinated debt issue (lower Tier 2 capital) of approximately EUR 50 million. The transaction is anticipated to be launched following investor marketing in the UK and continental Europe, subject to market conditions and final approval from the Board of Directors.
As previously announced, the principles behind Carnegie’s dividend policy should remain intact, i.e. that excess capital above a desired and prudent level of regulatory capital should be distributed as dividends. It is the Board’s intention to substitute the current Tier 1 target with an overall capital adequacy target, thus enabling supplementary capital, in addition to primary capital, to form part of Carnegie’s capital base.
The capital adequacy target in the new regulatory environment will be revised following the implementation of the Basel II Accord in Sweden during 2006.
For further information, please contact Karin Forseke (CEO) +46 8 5886 90 10, Mats-Olof Ljungkvist (CFO) +46 8 5886 90 13 or Birgitta Henriksson (IR) +46 8 5886 86 39.
This document is directed exclusively at persons who have professional experience in matters relating to investments or who are high network persons within article 12(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 and must not be acted or relied on by other persons in the United Kingdom. The securities described herein will be issued only to such persons.
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