Saxo Bank sells stake to CarVal

15 April,, Lagos — Saxo Bank is the Danish multi-asset brokerage bank that specialises in online trading with an estimated valuation of about €1.25 billion ($1.33 billion). According to a recent report, the bank has sought additional equity capital via the issuance of convertible notes.

The company sold Tier 2 Notes valued at €46.25 million ($49.3 million) raising new equity capital estimated at €31.25 million ($33.35 million). This stake was taken up by CarVal Investors, a global alternative investment fund manager which oversees over $10 billion under management. The acquisition of this stake puts CarVal as a minority shareholder, giving it a 2.5% ownership of the Danish bank, as Saxo Bank sells stake to CarVal .

Internal comments on capital raising

Kim Fournais and Lars Seier Christensen commented thus on the successful capital raising effort:

“In the process of exploring opportunities in the market, we found a combination which allows us to both issue additional capital and raise equity capital which will benefit the Bank, the shareholders, investors and clients.”

Thereafter the two spokespersons concluded the following upon the recent development: “This framework enables Saxo Bank to not only meet potential future capital requirements, but also to consolidate our market position as a solid industry player. The investment is testament to the trust in the bank’s ability to capitalise on significant growth opportunities. We welcome CarVal Investors as new shareholders and note owners”.

This step is seen as an effort to boost Saxo Bank’s capital strength to the “pre-SNB black swan” levels. Like the majority of financial entities, Saxo Bank was affected by this horrid as well, having incurred losses close to $107 million in credit exposure during the historic event. The new €77 million ($82 million) raised will therefore help Saxo bank to solidify the company’s core tier one capital ratio.

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