LONDON, April 14 (Reuters) - Denmark’s Saxo Bank, a global online trading firm, said it was expanding its capital base by issuing Tier-2 capital and fresh equity three months after it was left facing millions in losses when the Swiss National Bank removed its cap on the franc.
Saxo said it had strengthened its capital base by issuing convertible Tier 2 Notes for 46.25 million euros ($49.37 million) and new equity capital for 31.25 million euros.
“CarVal Investors, a leading global investment fund manager with more than $10 billion under management, became note owners when investing in the convertible Tier 2 and minority shareholders when subscribing shares equal to 2.5 percent of the share capital before this issue,” Saxo said in a statement.
After the SNB removed the cap on the franc, Saxo had said it was facing potential losses of up to $107 million. That came after many of its customers ended up with insufficient margin collateral to cover their losses on positions in the franc.
A number of its customers have asked a Danish law firm to represent them in a potential class action lawsuit against Saxo.
$1 = 0.9368 euros Reporting by Anirban Nag, editing by Nigel Stephenson