Innloseringsdel

Innloseringsdel is a term used in Norwegian finance to describe the portion of a financial instrument that can be redeemed or settled in cash under the terms of the issue. It typically refers to the part of a debt or hybrid instrument that may be repaid before or at maturity, while the remaining part retains its original features or continues to exist in another form.

The concept is common in instruments with mixed features, such as hybrid capital, certain bonds, or structured products. The innloseringsdel represents the portion that can be redeemed, either on a predefined redemption date or upon meeting specific conditions outlined in the prospectus or contract. The rest of the instrument may continue to accrue value, pay coupons, or be subject to conversion or other outcomes.

Redemption terms specify how and when the innloseringsdel can be redeemed, including the redemption price, timing, notice requirements, and any conditions or caps. The existence of an innloseringsdel affects the instrument’s risk profile and capital structure, introducing potential for early cash outflow for the issuer and altering exposure for the holder.

Example: A hybrid bond with a nominal value of 1000 NOK might include an innloseringsdel of 400 NOK that the issuer can redeem at par on a specified date, while the remaining 600 NOK retains its other features.

See also innløsningsrett, innløsning, hybridkapital. The precise rights and definitions of an innloseringsdel can vary by contract, so the issuer’s terms are essential.