Alandsbanken lifts call price, extends deadline in solicitation regarding covered bonds due 2022

By Rebecca Melvin

Concord, N.H., Aug. 25 – Alandsbanken Abp announced that it has decided to increase the call price and extend the early deadline for the proposed call in its consent solicitation regarding its SEK 2.5 billion floating-rate covered bond due 2022 (ISIN: SE0010598474), according to a press release.

The call price was raised to 100.9 per note from 100.8. The consent fee of 0.3% of the principal amount of notes voted for by each noteholder was unchanged.

The early deadline was extended to 6 a.m. ET on Aug. 27 from Aug. 25.

The bank announced a consent solicitation for the floaters on Aug. 17. The call option would allow the company to redeem all, but not some, of the notes prior to final maturity at the call price plus accrued interest.

As previously reported, it is soliciting consents in relation to a contemplated issue of a standalone covered bond with the bank as the initial issuer and then a subsequent transfer to Borgo AB as issuer at a later stage.

Alandsbanken is transferring its Swedish mortgage loans and SEK-denominated covered bonds to Borgo.

Noteholders voting in favor of the proposal are eligible to receive priority allocation in the new bonds.

Nordea Bank Abp and Danske Bank A/S are acting as joint lead managers and bookrunner for the new covered bond.

Nordea (nordealiabilitymanagement@nordea.com, +45 6161 2996) is acting as the tabulation agent and solicitation agent in connection with this procedure in writing.

Noteholders should return a voting form to Nordea by 6 a.m. ET on Sept. 1.

The record date is Aug. 25.

Results will be announced on Sept. 2.

The lender operates in Finland and Sweden from its headquarters in Mariehamm, Aland Islands (Finland).

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