Northmill successfully closes its first Tier-2 bond
Northmill has successfully closed its first SEK 100 million Tier-2 bond, strengthening the Group’s capital base and supporting continued profitable growth.
Northmill Group AB (publ) today announces the successful closing of its first Tier-2 bond of SEK 100 million, with a margin of 650 basis points over three-month STIBOR. The bond is issued by the bank’s parent company Northmill Group AB and the issuance date is set for 21 November 2025. Northmill intends to apply for listing of the bond on the Nasdaq Transfer Market within 30 days from the issuance date, followed by a listing on Nasdaq Stockholm within twelve months. The bond represents a key element of Northmill’s strategic expansion plans.
“Closing our first Tier-2 bond demonstrates the strong investor confidence in Northmill’s growth journey. The capital strengthens our ability to deliver on our strategy and reinforces our position as a tech-fuelled challenger bank”, said Julie Chatterjee, CEO Northmill Group.
The issuance strengthens the Group’s and the Bank’s capital base and lays the foundation for continued profitable growth. It also enables the achievement of previously stated financial targets, while highlighting Northmill’s position as an innovative market player.
Northmill Bank provides full-service solutions for businesses, including financing, payments, and accounts, a continuously growing business segment. On the consumer side, the number of cardholders is rising sharply thanks to its attractive fee-free bank card. Recently, the company also launched a flexible mortgage product, allowing consumers to extend mortgages or consolidate loans into their mortgage to reduce costs.
The bank’s consistent focus on profitable growth and creating value for its customers is reflected in record earnings for Northmill Group in Q3 2025. Operating income for the quarter increased by 25% to SEK 227 million, while profit before tax rose by 44% to SEK 62 million, both representing record levels. Portfolio growth remained strong during the quarter, the B2B portfolio grew fourthfold and the B2C portfolio increased by more than 7%.
“The Tier-2 bond enables continued profitable growth and represents an important step in optimising our capital structure. The issuance ensures that we can meet customer demand while increasing our return on equity” said Emil Folkesson, CFO Northmill Group.
DNB Carnegie acted as financial advisor in connection with the bond issuance, and Advokatfirman Vinge served as legal advisor for the transaction.
About Northmill Bank
Northmill Bank is a Swedish challenger bank with the vision “Improve Financial Life.” The company holds a full Swedish banking licence and differentiates itself from traditional banks. Northmill aims to be a full-service alternative to regional incumbents for both consumer and business customers. The bank enjoys strong customer satisfaction, with a 4.8 rating on Apple’s App Store and 4.5 on Trustpilot.
Northmill has twice been ranked among Europe’s fastest-growing companies by the Financial Times. With three nominations in total, it is the most shortlisted bank in the Nordics and ranks sixth in Europe in the Banking Tech Awards 2025. In Q4 2024, Northmill became the first Swedish bank to execute a payment through the Riksbank’s new infrastructure for real-time account-to-account transfers, RIX-INST.
Julie Chatterjee, CEO of Northmill Group, was the only executive from a Swedish bank invited to speak at the most recent annual FT Global Banking Summit. In October 2025, her peer-reviewed publication on AI in banking was published in the Journal of Digital Banking.
