Denmark's Nykredit asks for $1.8 bln in govt funds

COPENHAGEN, June 10 (Reuters) - Denmark's second largest financial group Nykredit said on Tuesday it would apply for a government injection of 9.5 billion Danish crowns ($1.80 billion) in hybrid core capital.

The government decided in January to make hybrid core capital -- loans which together with equity give banks a core capital base -- of 100 billion crowns available for Denmark's banks and mortgage lenders to answer market calls for higher capital ratios.

Nykredit said in a statement the government funds would increase its core capital ratio to above 17 percent from 14.6 percent at the end of March.

"With a view to ensuring adequate capital resources for continued lending growth in an uncertain macroeconomic environment... Nykredit Realkredit A/S shall apply for a government contribution," the company said.

Nykredit is the biggest Danish mortgage lender with a market share above 42 percent and total lending of 942 billion crowns.

The group also operates another mortgage brand and two banks, but neither are applying for state funds, Nykredit said.

Denmark's biggest bank, Danske (DANSKE.CO), has also joined the scheme along with other big lenders Jyske Bank (JYSK.CO) and Sydbank (SYDB.CO). ($1=5.277 Danish Crown) (Reporting by Peter Levring; Editing by Hans Peters)