Note 38 - Subordinated debt and hybrid capital issue

Accounting Policy

Subordinated debt are measured at amortised cost like other long-term loans. Subordinated debt ranks behind all other debt. Hybrid capital denotes bonds with a nominal interest rate, but the Bank is not obliged to pay interest in a period in which no dividend is paid, nor does the investor subsequently have a right to interest that has not been paid, i.e. the interest does not accumulate. Hybrid Capital have been classified as equity since these do not satisfy the definition of a financial liabiltiy in IAS 32. The bond is perpetual and SpareBank 1 SMN has the right to not pay interest to the investors. The interest will not be presented as an interest expense in the income statement, but as a reduction to equity. See also note 3 for a closer description. The treatment of subordinated debt and hybrid capital in the calculation of the group’s capital adequacy is described in note 5 Capital adequacy and capital management.

Parent bank   Group
31 Dec 2021 31 Dec 2022 (NOKm) 31 Dec 2022 31 Dec 2021
    Dated subordinated debt    
- - 2026 SpareBank 1 Finans Midt-Norge 16/26 43 43
250 250 2028 floating rate NOK (Call 2023) 250 250
500 500 2028 floating rate NOK (Call 2023) 500 500
250 250 2029 floating rate NOK (Call 2024) 250 250
- 1,000 2032 floating rate NOK (Call 2027) 1,000 -
3 15 Accrued interest 16 3
1,003 2,015 Total dated subordniated debt 2,058 1,046
         
1.9 % 3.2 % Average rate NOK 3.2 % 1.9 %
         
    Additional Tier 1 Capital    
0 0 5/99 SpareBank 1 Finans Midt-Norge floating rate NOK (Call 2022) 43 43
300 76 5/99 floating rate NOK (Call 2023) 76 300
300 300 5/99 floating rate NOK (Call 2023) 300 300
200 200 5/99 floating rate NOK (Call 2023) 200 200
250 250 5/99 floating rate NOK (Call 2024) 250 250
200 200 7/99 fixed rate 5.0 % NOK (Call 2025)*) 200 200
0 500 5/99 floating rate NOK (Call 2027) 500 -
0 200 5/99 floating rate NOK (Call 2027) 200 -
1,250 1,726 Total additional Tier 1 Capital 1,769 1,293
         
3.8 % 4.6 % Average rate NOK 4.6 % 3.8 %
 
*) Fixed rate funding changed to floating rate by means of interest rate swaps
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Group        
Changes in subordinated debt and hybrid equity issue 31 Dec 2022 Issued Fallen
due/
redeemed
Other
changes
31 Dec 2021
Ordinary subordinated debt, NOK 2,043 1,000 750 - 1,793
Accrued interest 16 - - 13 3
Total subordinated debt and hybrid equity issue 2,058 1,000.00 750.00 13 1,796
           
Changes in additional Tier 1 Capital 31 Dec 2022 Issued Fallen
due/
redeemed
Other changes 31 Dec 2021
Additional Tier 1 Capital, NOK 1,769 700 224 - 1,293
Total subordinated debt and hybrid equity issue 1,769 700 224 - 1,293
           
Changes in subordinated debt and hybrid equity issue 31 Dec 2021 Issued Fallen
due/
redeemed
Other
changes
31 Dec 2020
Ordinary subordinated debt, NOK 1,793 - - - 1,793
Adjustments - - - - -
Accrued interest 3 - - 0 3
Total subordinated debt and hybrid equity issue 1,796 - - 0 1,795
           
Changes in additional Tier 1 Capital 31 Dec 2021 Issued Fallen
due/
redeemed
Other
changes
31 Dec 2020
Additional Tier 1 Capital, NOK 1,293 - - - 1,293
Total subordinated debt and hybrid equity issue 1,293 - - - 1,293
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Annual report and notes

© SpareBank 1 SMN