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Danske’s $12bn debt issuance plan

After one of the biggest money laundering scandals in history, Danske bank is finally putting its debt out to market.

Danske is talking to investors about issuing 40 billion kroner in securities for 2019, a significant part of the bank’s yearly funding plan.

Details from the scandal are still unfolding, much of which coming from its Estonia branch which was a haven for corruption. The U.S. Justice Department is still investigating and substantial fines may still be to come. Danske knows full this will increase the cost of borrowing.

It has been a difficult time for Danske, with a profit warning issued late last year. Estonian police arrested 10 employees for their role in the scandal.

It is believed to have already cost Danske around half its market value, with expected fines in the region of $1-8bn. It is also yet to be seen who will lead Danske moving forward, after the CEO, Thomas Borgen, was removed.

Though Danske hasn’t specifically set aside money for fines, it is trying to get its finances in order to weather any storms that may approach. Whether the markets share their optimism remains to be seen.

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