Vestjysk Bank carries through redemption of hybrid loan capital

The Danish Financial Supervisory Authority
Nasdaq Copenhagen A/S

25 August 2017

Vestjysk Bank carries through redemption of hybrid loan capital

Vestjysk Bank has existing loans in the form of hybrid core capital in the amount of DKK 50,000,000 with a fixed interest rate of 2.635 %, respectively, DKK 100,000,000 with a variable interest rate of 2.315 % as per 31 December 2016. The loans have no fixed maturity and redemption dates.

With reference to the loan terms it is hereby announced that Vestjysk Bank will redeem the loans with the effect that the loan of DKK 50,000,000 is expected to be redeemed on 1 November 2017 and the loan of DKK 100,000,000 is expected to be redeemed on 15 November 2017. In accordance with the loan terms, redemption takes place at a price of 100 together with accrued interest.

Effect on the bank's capital and solvency
In isolation, the redemption implies that the bank's capital base is reduced by DKK 150,000,000. The redemption has no effect on the bank's capital adequacy requirement.

The redemption is to be viewed in conjunction with the bank's (i) issue of capital certificates in the form of hybrid core capital in the amount of DKK 155,000,000 and the issue of capital certificates in the form of supplementary capital (Tier 2) in the amount of DKK 225,000,000, and (ii) early redemption of state-funded hybrid loan capital in the amount of DKK 287,600,000 (at a price of 110, corresponding to DKK 316,360,000) with the addition of interest, and (iii) early redemption of subordinated loan capital in the amount of DKK 200,000,000 with the addition of interest. Reference is made to the bank's company announcements of 14 and 15 August 2017.

Vestjysk Bank A/S

Jan Ulsø Madsen
CEO

Vestjysk Bank A/S
Torvet 4-5
DK-7620 Lemvig
Denmark
Phone +45 96 63 20 00

CVR no. 34631328
www.vestjyskbank.dk

Vedhæftede filer:

Company announcement - Vestjysk Bank carries through redemption of hybrid loan capital.pdf