Why have Nordea changed its mind regarding hybrid loans and rights offerings being too expensive, time consuming and complicated?
Market perception of what constitutes a strong capital base has changed rapidly over the course of the last months. For a long time Nordea actually thought it would be enough to strengthen the capital base by issuing hybrid loans. But the market has clearly told Nordea that there is a strong preference for core capital, under these extraordinary market circumstances. The Rights Offering reinforces Nordea’s capital base with the highest quality capital in the form of straight equity, is fully transparent and secures fair treatment of shareholders through the application of pre-emptive rights.
