Sunday November 1, 02:47 PM
Denmark's Jyske Bank sets $239 mln rights issue
COPENHAGEN, Nov 1 (Reuters) - Denmark's second biggest bank, Jyske Bank (Copenhagen: JYSK.CO - news) , aims to raise nearly 1.2
billion Danish crowns ($239 million) by issuing new stock to existing shareholders, the bank said on Sunday.
The rights issue will strengthen Jyske Bank's capital base, enable it to pursue growth opportunities and help it to avoid taking hybrid capital loans from the government under a support package for banks, it said.
'A number of large investors have indicated their commitment to participate in the share issue which is expected to be fully underwritten, subject to customary terms and conditions,' Jyske Bank said in a statement.
'The gross proceeds from the issue are expected to be almost 1.2 billion Danish crowns,' it said.
Chief Executive Anders Dam said in the statement that the bank is well positioned to gain market share in the years ahead by pursuing selected growth opportunities.
'An even stronger capital position will enable us to exploit these growth potentials in the best possible way,' Dam said.
'Second, a successful completion of the share issue implies that the bank refrains from accepting hybrid capital under (the government's) Bank Package II,' Dam added.
By avoiding taking state hybrid capital, Jyske Bank would reduce interest expenses by 175 million to 200 million crowns on an annual basis, the bank said.
Handelsbanken Capital Markets and J.P. Morgan have been engaged as joint global coordinators and bookrunners for the share issue, and Handelsbanken Capital Markets as financial adviser, Jyske Bank said.
'Jyske Bank expects to make a further announcement in relation to the share issue during the second week of November (Frankfurt: A0Z24E - news) ,' the group said.
Shares in Jyske Bank closed at 190 crowns on Friday. Trade on the Copenhagen bourse resumes on Monday at 0800 GMT.
(Reporting by John Acher) ($1=5.021 Danish Crown) Keywords: JYSKEBANK/
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