Østjydsk Bank A/S has successfully completed the rights issue and the offering of capital securities with gross proceeds of DKK 87.8 mill.

The rights issue with pre-emptive rights for existing shareholders has been successfully completed whereby 240.000 new shares at a nominal value of DKK 100 were subscribed at a price of DKK 250 per share. The offering of capital securities (tier 1 capital) resulted in a subscription of DKK 27.8 mill.

The gross proceeds from the rights issue and offering of capital securities amounts to DKK 87.8 mill. After costs deduction, the bank will gain net proceeds of approx. DKK 83 mill. Net proceeds from the share issue and offering of capital securities will be used for:

• Improvement of the banks opportunity and terms to take out new senior capital for replacement of state guaranteed funding

• Prepare a repayment of state tier 1 capital, which among other things has a significant positive effect on operations

• Create opportunity for assessment of preliminary repayment of the banks supplementary capital

• Secure foundation for the banks continued market-related development

• Obtain a better valuation of the bank through increased core capital   

Strengthening of the capital base causes an increase of 1.5 % in the banks solvency to 19.2 % and in the core capital of 1.4 % to 13.9 %, measured on the banks latest publicized accounting figures from end 2010. 

The total number of shares in Østjydsk Bank after the issue amounts to 960.000 shares at a nominal value of DKK 100. The new shares will officially be listed at NASDAQ OMX Copenhagen from 26th of May 2011 under the ISIN code for the existing shares (DK0010017607).

ATRIUM Partners has acted as financial advisor to Østjydsk Bank in connection with the rights issue as well as the offering of capital securities.