Amagerbanken raises £99m to secure lifeline

SMALL Danish bank Amagerbanken has raised 898m Danish crowns (£99.3m) in a fully subscribed rights issue of new shares, fulfilling a tough condition for a government lifeline.

In June, Denmark told struggling Amagerbanken to raise 750m crowns by 15 September to qualify for a guarantee for a $2.3bn bond issue carried out in July.

Amagerbanken itself and analysts had said it would be difficult to raise the money in time.

Amagerbanken shares, which soared to a 10-month-high on 6 September when its main owner Karsten Ree, who has a 33.3 per cent stake, said he would take part in the rights issue, recovered some of its earlier losses on the day to close six per cent down at 6.45 crowns.

“It is expected that registration of the capital increase with the Danish Commerce and Companies Agency will be effected on 14 September 2010, and the first day of trading for the new shares is expected to be on 15 September,” Amagerbanken said.