Danske Bank is planning to raise $3.68 billion through a rights issue to return hybrid loans to the government of Denmark, The Wall Street Journal reports. The proceeds will be used by the bank to redeem $4.7 billion in subordinated hybrid capital that it borrowed from the state in 2009.
Danske’s share issue is expected to be floated by April 2011 and the state capital will be returned by May 2012. Danske Bank will act as global coordinator and book-runner, while Bank of America Merrill Lynch will serve as joint book-runner and underwriter of the rights issue.
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