ABLV Bank, AS will continue bond issue programme

Riga, Latvia, May 13, 2013, 13:55 / Investments

On 9 May 2013, the Council of the Financial and Capital Market Commission (FCMC) approved registration of the Base Prospectus of ABLV Bank, AS, Third Bond Offer Programme, allowing the bank to perform public offering of debt securities amounting to LVL 200 000 000 or equivalent amount in EUR or USD.

According to the Base Prospectus of the Third Bond Offer Programme, ABLV Bank may issue both straight and subordinated bonds. The programme term is till 5 May 2014. We will specifically inform about particular bond issues under this programme, after the respective decisions are made. As before, we plan to include new bonds in NASDAQ OMX Riga list of debt securities in order to begin public quotation of the bonds and make those available to mutual funds and other professional investors.

We started performing public bond issues in 2011. The issues of the bonds are performed in accordance with the bank’s strategic objectives – to raise sufficient financial resources available in the long term. Diversification of the sources of funding is considered to be an efficient way of achieving this objective, and this means raising financial resources not just in the form of the customers’ deposits, but also by issuing the bank’s debt securities – bonds.

At the same time, investments in bonds allow our customers to receive higher income than that under deposits and also ensure wider transaction opportunities — those can be purchased, sold or used as collateral to obtain financing, meanwhile retaining the investment amount and planned yield.

Since 2011, three bond issues performed under ABLV Bank, AS, First Offer Programme and nine bond issues under ABLV Bank, AS, Second Offer Programme have been included in NASDAQ OMX Riga lists of debt securities. In terms of the face value of the bonds, the total amount of the said issues exceeds LVL 180 million.

NASDAQ OMX Riga presented Stock Exchange Annual Award 2012 to ABLV Bank, AS, for important contribution to formation of Latvian securities market by expanding the range of available financial instruments and services. According to NASDAQ OMX data, in 2012 ABLV Bank, AS, ensured 86.7% of the listed debt securities trading turnover in Riga market, whereas in the Baltics (Riga, Tallinn, Vilnius) trading in securities issued by ABLV Bank, AS, constituted 29.8% of the total trading turnover. This is the second best result among 14 members of the Baltic Stock Exchange.

ABLV Bank, AS is the largest independent private bank in Latvia. The bank’s majority shareholders — Oļegs Fiļs, Ernests Bernis and Nika Berne – directly and indirectly hold 86% of the bank's voting share capital. ABLV Group includes ABLV Bank, AS; ABLV Bank Luxembourg, S.A.; ABLV Capital Markets, IBAS; ABLV Asset Management, IPAS; Pillar Holding Company, KS; ABLV Consulting Services, AS; ABLV Corporate Services, SIA; New Hanza City, SIA, and other companies. ABLV Group has representative offices in Moscow, St. Petersburg, Yekaterinburg, Kiev, Odessa, Minsk, Almaty, Dushanbe, Baku, and Tashkent.

Ilmārs Jargans
Head of Public Relations Department
+371 6777 5296