PostNord secures state funding for Danish operations

PostNord has reported that it has secured funding of SEK 2.2bn for the transformation of its Danish operations. The funding has been secured following an agreement signed today (20 October) between PostNord and the Swedish and Danish states.

The agreement will result in SEK 1,533m being provided by the Danish state, which constitutes a payment for ensuring the universal postal service. SEK 267m constitutes an equity contribution from the Danish state and SEK 400m constitutes an equity contribution from the Swedish state.

“Digitalization has resulted in the need for a major transformation of the Danish business operations. We are therefore very pleased that the owners have come to an agreement regarding the financing of this and that the owners are united in their support for PostNord’s business activities. This means that we can now resume the transformation of the Danish operations with renewed vigor. Together with the amendments to the Swedish postal regulations that have been announced, this creates a good basis for the entire Group’s continued stability and strategic development,” said Chairman of the Board of PostNord, Jens Moberg.

“Once the transformation is complete, we will be able to maintain the universal postal service and have profitable letter-related activities, even with the small letter volumes that now exist in Denmark, and we will be a role model for postal services around the world that are experiencing the same trend with decreasing letter volumes.”