41CO Kommunal Nts

 

TIDM41CO 
 
RNS Number : 8799R 
Kommunal Landspensjonskasse 
07 May 2009 
 
                                   Oslo, 7 May 2009 
KLP buys Kommunekreditt 
An agreement has been entered into today between Eksportfinans and Kommunal 
Landspensjonskasse (KLP) on the purchase of 100 per cent of the shares in 
Kommunekreditt for MNOK 870 million. At the same time the Ministry of Local 
Government and Regional Development and KLP have entered into an agreement on 
the State buying KLP's ownership interest in Kommunalbanken. 
 
 
KLP has experience dating far back on lending to Norwegian local authorities and 
their enterprises. "Our customers have been very specific about the importance 
of maintaining a strong competitor to Kommunalbanken. By buying Kommunekreditt, 
we are contributing to that end while strengthening our competitive power and 
profitability in that area", says Sverre Thornes, the CEO. 
 
 
KLP today has lendings to the public sector totalling NOK 13 billion. By 
purchasing Kommunekreditt, KLP lendings are increasing by upwards of NOK 40 
billion. 
 
 
The agreement implies that KLP will be taking over Kommunekreditt by 30 June 
2009. By that time the agreement is to be finally adopted by the KLP Supervisory 
Board. The agreement means that Eksportfinans will continue financing 
Kommunekreditt after KLP takes over, although such financing will be scaled down 
and wound up by 15 September 2011. Moreover, KLP will apply to the authorities 
for the necessary licences to carry on Kommunekreditt's activities under KLP's 
ownership. 
 
 
KLP Kommunekreditt, the new company, will still have its head office in 
Trondheim (Norway). 
 
 
"We want to continue building the good relations existing between Kommunekreditt 
and the public sector with its base in Central Norway", says Mr Thornes. 
"Moreover, we want the head office of our coming bank to be located there", he 
adds. 
 
 
Selling KLP's holding in Kommunalbanken 
KLP has had a 20 per cent stake in Kommunalbanken since the year 
2000. Kommunalbanken is a well run and profitable financial institution. 
However, for competitive reasons it is desirable for KLP to sell itself out of 
the Bank and therefore KLP is extremely pleased that the Ministry of Local 
Government and Regional Development today has entered into an agreement with KLP 
in which the former, subject to a positive result being reached by the Norwegian 
Storting (Parliament), will take over KLP's stake in the Bank. The agreement 
implies that the State will take over KLP's shares at a price of NOK 531.9 
million. 
 
 
"Thanks to the State's efficient move and willingness to find a good solution, 
these transactions have been made possible" says Sverrre Thornes, while 
stressing that by taking over the shares in Kommunalbanken, the State is also 
safeguarding the Bank's interests.  . 
 
 
 
 
 
 
+------------------------------------+------------------------+ 
| For further information please contact:                     | 
+-------------------------------------------------------------+ 
| Mr Sverre Thornes, CEO             | +47 22 03 35 59/       | 
|                                    | +47 97 74 40 07        | 
+------------------------------------+------------------------+ 
| Mr Aage Schaanning, Executive Vice | +47 22 03 79 01/       | 
| President Finance and CFO          | +47 90 52 43 12        | 
+------------------------------------+------------------------+ 
| Mr Ole Jacob Frich, Executive Vice | +47 22 03 78 96/       | 
| President Communication            | +47 90 91 55 23        | 
+------------------------------------+------------------------+ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 ACQARMITMMBMBLL 
 

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