STOCKHOLM -- Den Norske Bank, Norway's biggest, has completed a massive recapitalization program by placing $150 million of subordinated notes with international investors.
Five offerings were launched in the past month, culminating in a $50 million Eurodollar issue. "The success of our bond offerings is a sign of acceptance," said the bank's chief executive, Finn Hvistendahl. A recent domestic equity offering flopped, however.
Den Norske had hoped to preserve majority private ownership through the issue of $391.7 million worth of new preference stock. But turbulent market conditions during the offering period sank the price of the bank's stock and left the Norwegian government as the bank's new controlling owner.