Kaupthing Singer & Friedlander Ltd (KSF) is a wholly-owned subsidiary of the Northern European Investment Bank, Kaupthing Bank hf (KB), which is registered in Iceland. We operate from offices in London and Birmingham with an offshore sister-company in the Isle of Man, as well as several subsidiaries based in a variety of other UK locations.

Originally founded in 1907, we remain today a UK bank, registered in, and operating from, the UK. KSF is authorised and regulated by the Financial Services Authority, which is accountable to the UK Treasury, which covers stringent guidelines on, inter alia, liquidity and capital adequacy. KSF, as well as being independently authorised and regulated, is also separately rated by the leading International Rating Agency, Fitch, who ascribe the following ratings, as at 30 September 2008.

Long-term: BBB
Short-term: F3
Individual: C
Support: 2 

The majority of KSF's lending assets are UK-based, and most are also fully secured on a variety of assets. Our risk profile is conservative and our good history of provisions and bad debts proves this. KSF is a growing bank, which is currently independently funded, mainly from retail deposits, and with no material exposure to Kaupthing Bank or to Iceland generally.

Our parent, Kaupthing Bank, is a fast-growing bank with total assets of c.€53bn as at 30 June 2008. It is the largest bank (and in fact the largest company altogether) on the Icelandic Stock Exchange, and one of the Top 10 banks in the Nordic region and is in the Top 100 in the World. It has the same credit rating position as KSF from Fitch, but has in addition the following ratings from Moody's:

Long-term: A1
Short-term: P-1
Financial Strength: C

KSF offers to investors various protections afforded by the FSA regulation, such as the Financial Services Compensation Scheme and the Financial Ombudsman Service, together with the features mentioned above relating to liquidity, capital adequacy, asset quality and credit ratings. With all the above in mind, and with the added strength of its parent, Kaupthing Bank, behind it as well, we believe the KSF covenant is a good one for investors.

More Information

To discuss how we can best meet your needs, please contact:

• Jennifer Gill
  FI Relationship Managment
  Treasury
  Tel: +44 (0)20 3205 7094