Oslo, 10.12.2018 On 29 November, Finanstilsynet (The Financial Supervisory Authority of Norway) sent out a message clarifying capital requirement for defaulted loan portfolios. For B2Holding ASA, the capital requirement will have little impact on the established business. In the message from Finanstilsynet, it is stated that some regulated entities holding a finance licence uses a risk weight of 100 percent on defaulted loan portfolios, while Finanstilsynet specifies that a risk weight of 150 percent must be used (unless the buyer writes down the book value with no less than 20 percent of the purchase price.). In practice, risk weighting has an impact on the equity a financial institution must have to cover the risk of an investment. It is important to note that the regulations apply only to financial institutions operating with a financial licence in Norway or in an EU country. “For B2Holding, a risk weight of 150 percent will have little impact on the established business. Our acquired portfolios are mainly purchased through entities that are not regulated and therefore not affected by the mentioned clarification from Finanstilsynet. B2Holding ASA has recently established a finance licenced entity in Norway through the subsidiary Interkreditt Kapital AS. This company is subject to the mentioned requirements of risk weighing against equity”, says Chief Legal Officer in B2Holding ASA, Thor Christian Moen. Up to now, no major portfolios have been acquired in B2Holding's Norwegian subsidiary. “B2Holding has taken into account when designing future budgets and operating plans an internal equity ratio that fully takes into account the regulatory risk requirement of 150 percent," says Moen. For further information, please contact: Thor Christian Moen Chief Legal Officer Telephone: +47 907 02 959 Email: tcm@b2holding.no or Rasmus Hansson Director of M&A and Investor Relations Telephone: +47 952 55 842 Email: rh@b2holding.no
