Swedbank $2.2 bln rights issue oversubscribed

 

Sweden's Swedbank said on Tuesday its 15.1 billion Swedish crown ($2.2 billion) rights issue was covered nearly twice over.

Sweden's fourth largest bank by market capitalisation said the issue was 188 percent covered, with investors buying 98.4 percent of the 386.5 ordinary shares based on their rights.

"The large oversubscription for the rights offering clearly shows our shareholders' overwhelming support for Swedbank, which is very comforting" Chief Executive Michael Wolf said in a statement.

"The rights offering will strengthen Swedbank's ability to implement its strategy and secure an accelerated return for the bank to competitive wholesale funding."

The bank has set the subscription price in the share issue - the bank's second in less than a year - at 39 crowns,compared with a closing price of 66.25 crowns on Monday.

Bank of America Merrill Lynch and Credit Suisse were the underwriters.