Capital securities written procedure initiation

OPR-Finance Oy plans to initiate a written procedure in accordance with the terms of its 2017 capital securities (ISIN: FI4000292180) in order to postpone the date on which the increased interest rate will start accruing (First Reset Date) by 24 months. Investors representing more than 40 percent of the total principal of the capital securities have expressed initial support for the plan.

The company justifies its plan with the need to strengthen its cash flow from financing at the turning point of the company’s business, where the decline of the company’s loan portfolio granted prior to the Finnish and Swedish interest rate cap legislation is progressing, while the portfolio for the company’s new loan products is growing. With the new business and the strengthening balance sheet, the company’s prospects on refinancing the capital securities are expected to improve over the time.

The company’s board of directors will make a decision on initiating the written procedure in the next few days, and the procedure itself is expected to begin at a later date at the turn of January-February.