By Dominic Chopping
Norwegian bank DNB ASA (DNB.OS) said Wednesday that in the
fourth quarter of 2012 it will record a positive effect of basis
swaps connected to funding of approximately NOK235 million.
MAIN FACTS:
-For the full year 2012, there will be a negative effect of
basis swaps of approximately NOK1.69 billion.
-In the fourth quarter of 2011, a positive effect of NOK2.07
billion was recorded, while there was a positive effect of NOK3.03
billion for the full year 2011.
-Basis swaps are derivative contracts entered into in connection
with long-term funding in international capital markets where the
relevant currency is converted to Norwegian kroner.
-These swaps are hedging instruments, and over the lifetime of
the derivatives the mark-to-market adjustments will have zero
effect. Over time, the accounting effects will thus be
reversed.
-Shares closed Tuesday at NOK73.15, valuing the company a
NOK119.15 billion.
-Write to Dominic Chopping at dominic.chopping@dowjones.com
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