Oma Savings Bank Plc is planning to issue a debenture loan
OMA SAVINGS BANK PLC, STOCK EXCHANGE RELEASE 13 SEPTEMBER 2022 AT 15.50 P.M. EET, INSIDE INFORMATION
Oma Savings Bank Plc is planning to issue a debenture loan
Oma Savings Bank Plc (OmaSp or Company) is planning to issue a debenture loan of EUR 20 million during September 2022. In addition, the Company is planning to issue a second debenture loan with a maximum amount of EUR 20-30 million during the fourth quarter of 2022.
The Company is launching measures to strengthen its capital structure. At the end of June 2022, the Total Capital (TC) ratio was 13.2%. The capital structure consisted mostly of Common Equity Tier 1 capital (CET1). The own funds requirement for the Company is 12.01%.
The first measure is the issuance of a debenture loan of EUR 20 million in September 2022. The issuance requires the approval of the offer prospectus by the Finnish Financial Supervisory Authority (FIN-FSA). In addition, the company is planning to issue another EUR 20-30 million debenture loan in late 2022.
Issuances strengthens the capital structure and prepares for possible changes in the interest rate environment. In addition, the aim is to be prepared for the capital needs required for business growth and investments, as well as the planned merger of Liedon Savings Bank’s banking business. The impact of the merger on capital adequacy becomes more accurate when the transaction is completed, and it is possible that the merger will have a slightly weakening effect on capital adequacy. The Company will give the first reasoned assessment of the impact on capital adequacy in connection with the third quarter earnings release.
With the above issuances the amount of the Company's Tier 2 capital will increase by EUR 40-50 million during the financial year 2022.
Oma Savings Bank Plc
Additional information:
Pasi Sydänlammi, CEO, tel 6,
Sarianna Liiri, CFO, tel 2,
Minna Sillanpää, CCO, tel ,
Distribution:
Nasdaq Helsinki Ltd
Major media
OmaSp is a growing Finnish bank and the largest savings bank in Finland based on total assets. About 330 professionals provide nationwide services through OmaSp’s 35 branch offices and digital service channels to 160,000 private and corporate customers. OmaSp focuses primarily on retail banking operations and provides its clients with a broad range of banking services both through its own balance sheet as well as by acting as an intermediary for its partners’ products. The intermediated products include credit, investment and loan insurance products. OmaSp is also engaged in mortgage banking operations.
OmaSp core idea is to provide personal service and to be local and close to its customers, both in digital and traditional channels. OmaSp strives to offer premium level customer experience through personal service and easy accessibility. In addition, the development of the operations and services is customer-oriented. The personnel is committed and OmaSp seeks to support their career development with versatile tasks and continuous development. A substantial part of the personnel also own shares in OmaSp.
