ABG Sundal Collier acted as joint manager in connection with the bond issues of SEK 1,400m in AT1 and SEK 650m in Tier 2 by Nordax Holding, to partly finance the acquisition of Bank Norwegian

On 26 October 2021, Nordax Holding, backed by Nordic Capital and Sampo, successfully raised a FRN Additional Tier 1 bond (“AT1”) of SEK 1,400m and a FRN Tier 2 Subordinated bond (“Tier 2”) of SEK 650m. The AT1 has a coupon of 3m STIBOR + 4.75%, while the Tier 2 has a coupon of 3m STIBOR + 2.75%. The AT1 bond is perpetual and has a first call date after 5 years.
The Tier 2 has a tenor of 10 years, and a first call date after 5 years. The AT1 and Tier 2 bonds qualify as regulatory capital for Nordax Holding and the proceeds will be used to partly finance the NOK 19.6bn acquisition of Bank Norwegian.
The transaction was well received in the market and was upsized from the initial minimum amounts of NOK 820m and NOK 460m, for the AT1 and Tier 2, respectively. The bond issues were guaranteed by a consortium led by ABG Sundal Collier.