Settlement between DNB and municipalities

DNB Bank ASA and the municipalities Bremanger, Hattfjelldal, Hemnes, Kvinesdal, Narvik, Rana and Vik have agreed on a solution in the so-called ‘Terra case’.

This implies that the municipalities will pay NOK 650 million as a final settlement to DNB. The court proceedings scheduled for 21 September 2015 will thus not take place. 

The agreement is conditional on approval by the decision-making bodies in the respective municipalities and DNB. 

The settlement will reduce DNB’s pre-tax operating profits by NOK 159 million in the second quarter of 2015. 

The case concerns the financial settlement in the wake of a number of agreements entered into between the municipalities and the bank, based on advice from Terra,during the 2001-2006 period. According to the agreements, the municipalities were paid the current value of future income from power production and other sources of municipal revenues. Based on advice from Terra Securities, the municipalities invested this money in the financial market, whereafter they suffered sizeable losses. The municipalities have claimed compensation for the losses from Terra Securities, the insurance companies used by Terra Securities and Terra Securities’ bankruptcy estate.

Contact information:

Investors: Rune Helland, Investor Relations, tel. (+47) 977 13 250

Press: Thomas Midteide, group executive vice president, Corporate Communications, tel. (+47) 962 32 017