United Arab Emirates – Mubasher: Global online trading and investment specialist Saxo Bank has announced strengthening its capital base by issuing convertible Tier 2 Notes in exchange for EUR 46.25 million by issuing new equity capital worth EUR 31.25 million.

“CarVal Investors, a leading global investment fund manager with more than $10 billion under management, became note owners when investing in the convertible Tier 2 and minority shareholders when subscribing shares equal to 2.5% of the share capital before this issue,” Saxo Bank said in a statement on Wednesday.

“The Tier 2 instrument fulfils the new European capital regulations and is subject to conversion into ordinary shares if the common equity Tier 1 ratio in the Saxo Bank Group and/or Saxo Bank A/S falls below 7%,” the bank said.

After the issuances, the bank’s “A/S and Saxo Bank Group’s regulatory capital ratio are 22.8% and 19.0% respectively while the estimated solvency need is 13.8% and 12.8% respectively,” it added.

Kim Fournais and Lars Seier Christensen, co-CEOs and co-founders of the investment bank, said in a joint statement: 

“The investment is testament to the trust in the bank’s ability to capitalise on significant growth opportunities. We welcome CarVal Investors as new shareholders and note owners.”