Sbanken has received its MREL requirement from the Norwegian FSA. The MREL requirement is set at 31.0 per cent of its adjusted risk weighted assets. Based on the Group’s balance sheet as at 31 December 2019, and taking into account existing own funds in the Group, this translates to an increased requirement for eligible liabilities of NOK 4 164 million. The requirement comes into effect from 31 March 2021.
Eligible debt included in fulfilling the requirement must be debt instruments with a priority lower than ordinary senior preferred debt, and be debt issued from the Group’s parent company to external investors.
The subordination requirement must be fulfilled by 1 January 2024. Until then, the fulfilment may be phased in by the inclusion of senior preferred debt issued by Sbanken to external investors and with a remaining maturity above one year. The phasing in shall as a minimum be linear over the years 2021, 2022 and 2023, such that the Group as a minimum in 2021 shall phase in one third of the remaining requirement for eligible liabilities, calculated as at 31 December 2021. Sbanken will deliver a plan to the Norwegian FSA by 31 March 2021, detailing how the Group plans to fulfil the MREL requirement.
Please refer to the Norwegian FSA’s press release for further details (in Norwegian):
Jesper M. Hatletveit, Head of IR, Sbanken ASA, +47 959 40 045
Øyvind Telle, Head of Treasury, Sbanken ASA, +47 916 88 704
Henning Nordgulen, CFO, Sbanken ASA, +47 952 65 990
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act