September 13, 2012 / 2:20 PM / 5 years ago

Danske Bank says to issue $1 bln bond

COPENHAGEN, Sept 13 (Reuters) - Denmark’s biggest financial institution Danske Bank said on Thursday it would issue tier two capital in the form of a $1 billion bond loan to strengthen its capital.

The bank said in a statement the 25-year bond would be issued with an annual coupon of 7.125 percent in effect until Sept. 21, 2017, and the coupon would be reset every five years.

The bond would be issued at par, it said.

“The bond loan represents a step in the bank’s ongoing adjustment of its capital structure to the future European capital requirements for banks,” Danske Bank said.

“It is structured to comply with the expected criteria for tier 2 capital,” it said. (Reporting by Copenhagen Newsroom)

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