Nordea (Finland) (HEL:NDA1V) Nordea Sells Credits To Municipality Finance In Finland

Nordea (Finland) (HEL:NDA1V) Nordea and Municipality Finance (Kuntarahoitus) have today, on 23 September 2008, concluded a framework agreement under which Nordea will sell credits it has granted to municipalities and municipality-owned companies to Municipality Finance in Finland. The first trade, consisting of a portfolio of close to EUR 600 million, is to take place on 30 September. The trade will have no effect on Nordea's financial result.

The only effect to debtors resulting from the trade will be the change of lenders. In other respects, the credit terms will remain the same. The debtors concerned will be notified of the trade separately.

- The financial turmoil originated in the United States has raised the funding costs of all banks, including Nordea. Traditionally, Finnish municipalities have obtained finance with very low margins. In the prevailing market situation, the finance acquired by Municipality Finance with guarantee from the Municipal Guarantee Board is highly competitive in relation to banks, and therefore we were able to find a good solution for all the parties concerned, says Pekka Nuuttila, Head of Banking Finland.

- Nordea's funding and capital position is strong. With the sale of the credit portfolio we react to the risen funding costs. Nordea is not terminating its lending to the municipal sector but will continue its good cooperation with Finnish municipalities, says Nuuttila.

For further information: Pekka Nuuttila, Head of Banking Finland, +358 9 165 42530 Kati Tommiska, Group Identity & Communications, +358 9 165 42320

Nordea (Finland)

http://www.nordea.com

ISIN: FI0009902530

Stock Identifier: XHEL.NDA