Nordea launches consent solicitations for noteholders amid re-domiciliation
Nordea Bank Abp has initiated consent solicitations for holders of its outstanding notes. The changes are related to the bank's planned re-domiciliation from Sweden to Finland.
Helsinki – Nordea Bank Abp has launched a process to seek consent for modifications to the terms and conditions of certain outstanding notes. These changes are driven by the bank's planned re-domiciliation of its parent company from Sweden to Finland.
The move to Finland, which is part of the EU's banking union, aims to harmonize regulations and create a more level playing field with European peers, according to the bank. Nordea Sweden will merge with a newly established Finnish subsidiary, Nordea Holding Abp, after which Nordea's registered office will be in Helsinki.
Through the consent solicitation process, Nordea is requesting approval from noteholders for specific amendments, primarily concerning the implications of the change in the company's domicile. The affected instruments include several euro, Swedish krona, Japanese yen, and U.S. dollar-denominated notes, including subordinated and Additional Tier 1 capital notes.
The bank is offering noteholders a consent fee, set at 0.20% of the principal amount, for approving the proposed changes. Nordea disclosed that it, or its affiliates, holds a portion of these outstanding notes, and no consent fee will be paid on those amounts.