Saxo Bank Perpetual Fixed Rate Resettable Additional Tier 1 Capital Notes (the “Notes”)
In accordance with the terms and conditions of the Notes clause 16, the Issuer hereby submits the following notification to the Holders of the Notes.
Further information on impact of the Swiss Franc move on 15 January, 2015.
As previously notified on 19 January, 2015, a number of Saxo Bank’s customers ended up with insufficient margin collateral to cover their losses on positions in the Swiss Franc. Saxo Bank is liaising with these clients to settle such unsecured amounts. Some customers will not be able to the settle the balance in full and the bank will incur losses in this respect.
Taking the estimated maximum loss into account the Total Capital of Saxo Bank A/S and Saxo Bank Group would be DKK 1.97 billion and DKK 2.15 billion respectively. The total Capital Requirement are DKK 1.46 billion and DKK 1.71 billion respectively and the CET 1 Capital Buffer would be DKK 0.41 billion and DKK 0.42 billion respectively. In comparison, the CET Capital Buffer was DKK 0.48 billion and DKK 0.44 Billion as of 30 June, 2014.
The CET1 Ratios are 11.9% and 10.7% for Saxo Bank A/S and Saxo Bank Group respectively and the Total Capital Ratios are 16.2% and 14.3%.
Saxo Bank Group estimates the maximum loss that the Bank can incur in relation to the sudden material increase in the price of Swiss Franc on 15 January, 2015, to be DKK 0.7 billion equal to USD 107m on a net basis.
As stated above, even in the unlikely event of suffering the maximum estimated loss then Saxo Bank would still more than fulfil its regulatory capital requirements.
