The Board of Directors of DNB Bank ASA has decided to initiate a share buy-back
programme comprising up to 1.0 percent of the company's own shares, which
represents a total of 15,426,132 shares. The buy-back programme was adopted
based on an authorisation given by the Annual General Meeting held on 25 April
2023. The Financial Supervisory Authority of Norway has approved the buy-back
programme, on the condition that the total buy-backs do not reduce the company's
own funds by more than NOK 3.3 billion.
The purpose of the buy-back programme is to optimise the company's capital
structure, by reducing the common equity tier 1 (CET1) capital ratio by
approximately 0,30 percentage points. The reduction took effect from the end of
Q3 2023, when the company had a CET1 capital ratio of 18.3 percent.
Up to 0.66 percent of the company's own shares, which equals 10,181,247 shares,
will be bought back on trading venues, at a price of between NOK 10 and NOK 300
per share. The buy-backs will, at the latest, end on 30 January 2024. DNB
Markets will manage the buy-backs on behalf of the company, and will decide the
timing of the purchases independently of the company. The shares that are
purchased will be proposed cancelled at the Annual General Meeting in 2024.
The remaining 0.34 per cent of the shares - up to 5,244,885 shares - will at the
same Annual General Meeting be proposed redeemed from the Norwegian Government,
represented by the Ministry of Trade, Industry and Fisheries ("NFD"), so that
NFD's ownership interest of 34 percent remains unchanged. NFD's shares will be
redeemed at a price equal to the average price of the shares bought back on
trading venues, with the addition of an interest compensation.
The buy-back programme will be carried out in accordance with the Market Abuse
Regulation and the regulation regarding buy-back programmes and stabilisation
measures.
The company already owns 0.99 percent of its own shares, which were purchased
under the buy-back programme that was announced on 17 July 2023 and completed on
18 October 2023. These shares will be proposed cancelled at the Annual General
Meeting in 2024. Additionally, 0.51 percent of the shares in the company will be
proposed redeemed from NFD.
For further information, please contact Rune Helland, Head of Investor
Relations, on +47 23 26 84 00 or +47 97 71 32 50.
This announcement contains information that is subject to disclosure
requirements pursuant to the Market Abuse Regulation and section 5-12 of the
Norwegian Securities Trading Act.