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Danske Bank applies for subordinated loan capital issued by the Danish state

Company Announcement No 6/2009

In its Annual Report 2008, the Danske Bank Group stated that it would apply to the Danish state for subordinated loan capital in the form of hybrid core capital. The Bank has submitted its application and expects to receive subordinated loan capital totalling around DKr26bn.

The capital injection will strengthen the Group’s capital base and enable the Group to withstand the losses that will inevitably occur during the economic recession while maintaining its lending activities.

With the addition of the subordinated loan capital, the Group expects its core capital ratio to increase to about 12% and its solvency ratio to increase to about 16% (on the basis of the capital levels at December 31, 2008).

The Bank has also applied to be eligible to convert the subordinated loan capital to share capital if its hybrid core capital comes to exceed 35% of total core capital. The conversion option would mean that the Group could always obtain the greatest possible benefit for its solvency from the subordinated loan capital.

The final terms and conditions of the subordinated loan capital will be released after they have been agreed upon with the Danish state.

Danske Bank A/S

Peter Straarup, Chairman of the Executive Board, Danske Bank, phone +45 45 14 60 01
Martin Gottlob, Head of Investor Relations, Danske Bank, phone +45 45 14 07 92