Financial institution of Åland Plc

Inside data

February 14, 2022, 9:00 EET

The switch of Swedish mortgage loans and coated bonds from the Financial institution of Åland Plc to Borgo AB has been applied

The beforehand introduced switch of a lot of the Financial institution of Åland’s Swedish mortgage loans and associated beforehand issued coated bonds to Borgo was carried out at present. The nominal quantity of the mortgage portfolio that was transferred is EUR 10.4 billion. The nominal quantity of the beforehand issued coated bonds, which now have Borgo as their issuer, is EUR 7.5 billion. A smaller mortgage portfolio within the vary of EUR 2 billion in dimension will probably be transferred later in 2022.

The transaction could have a nonrecurring optimistic impact within the Financial institution of Åland’s earnings assertion within the EUR 10 M vary. On the identical time, this may imply a smaller mortgage portfolio within the Financial institution of Åland’s personal stability sheet and thus a decrease present web curiosity earnings. Sooner or later, the Financial institution of Åland will as an alternative obtain distribution charges for brokered loans and platform revenues for sustaining varied providers to Borgo. The entire full-year impact on 2022 earnings is anticipated to be optimistic.

The Financial institution of Åland’s beforehand communicated future outlook is just not affected by the switch. In different phrases, the Financial institution’s web working revenue in 2022 will probably be about the identical as in 2021.

The coated bonds issued by the Financial institution of Åland – SEK 2,000,000,000 with maturity Might 12, 2025, ISIN: SE0013359627 and SEK 5,500,000,000 with maturity September 10, 2026, ISIN: SE0013360419 (collectively “Bonds”) – modified issuer together with the switch from the Financial institution of Åland underneath Finnish mortgage banking laws to Borgo as issuer underneath Swedish mortgage banking laws. February 14, 2022 is the primary clearing and settlement date of the Bonds with their new ISIN codes: SE0017232366 and SE0017232358. The SEK 2,000,000,000 bond with maturity Might 12, 2025 has its coupon date on February 14, 2022. The coupon will probably be paid by the Financial institution of Åland.

For additional data, please contact:                                                                                                

Peter Wiklöf, Managing Director and Chief Govt, Financial institution of Åland Plc (Ålandsbanken Abp), tel. +358 40 512 7505