2009-06-24

SEB further consolidates a strong core capital position

SEB has successfully completed the tender to buy-back GBP 400m of subordinated debt at 75 per cent of par as was communicated on 16 June 2009. The two loans included in the tender both had short remaining maturity to call date; GBP 225m of the acquired volume referred to a subordinated loan with a call date in 2010 and GBP 175m to a call date in 2011.

As a consequence, SEB will record a capital gain of approximately SEK 1.3bn in the second quarter results of 2009 since the notes are repurchased at a discount. The capital gain will thus add 16 basis points to SEB's core tier 1 capital ratio. At the end of March 2009, the core tier 1 ratio was 10.2 per cent and the tier 1 ratio was 12.0 per cent applying Basel II without transitional rules. The effect on the total capital ratio is net negative around 40 basis points (14.3 per cent at 31 March 2009).

The capital action shall be seen in light of SEB's strategy to be well-capitalised and to upgrade the quality of capital.