Convenient Forward transactions, accounting services, and other summer innovations

Riga, Latvia, June 2, 2016, 10:30 / Banking

Convenient and clear Forward transactions on currency market, accounting services in new jurisdictions, new issues of ABLV Bank bonds, bond issue arrangement opportunities for clients, financing secured by pledge of investment portfolio in new currencies, results of bond corporate actions credited on the same day, residence permits and change of tax residency, payments in three new currencies, and several payment card news — these are the main aims of product and service innovations, some have been already implemented and some are being realised in the coming month.

1. Sixth ABLV bond issue programme

We continue issuing ABLV Bank bonds by performing new bond issues three times per year. For this purpose, Base Prospectus of ABLV Bank Sixth Bond Offer Programme has been registered, and under the same the bank is entitled to perform public offer of debt securities amounting to EUR 400 million or equivalent amount in USD in the following 12 months.

Therefore, subscription to new bond issues has been started, and it will last till 4 July 2016. The parameters of the issues are the following:

  • Coupon bond issue of USD 75 000 000
    (issue name: ABLV FXD USD 110718; ISIN: LV0000802072)

    The issue size is USD 75 000 000. The number of bonds is 75 000. The face value of one bond is USD 1 000. The annual interest rate is fixed: 1.85% with coupon payment twice a year. Initial placement price: 100% of the face value. The issue date is 11 July 2016, and the maturity date is 11 July 2018.
  • Coupon bond issue of EUR 20 000 000
    (issue name: ABLV FXD EUR 110718; ISIN: LV0000802080)

    The issue size is EUR 20 000 000. The number of bonds is 20 000. The face value of one bond is EUR 1 000. The annual interest rate is fixed: 0.70% with coupon payment twice a year. Initial placement price: 100% of the face value. The issue date is 11 July 2016, and the maturity date is 11 July 2018.

Currently, 21 our bond issues are publicly traded, and their total face value exceeds EUR 620 million.

2. Arrangement of bond issues for clients

The bank’s bond issue programme was launched in 2011. During these five years, we have accumulated large experience and knowledge of issuing debt securities that we want to offer to clients. Therefore, we are ready to arrange bond issues for our clients, which are an alternative source of raising financing for the company.

Bond issue allows company to raise additional financing both with the collateral and without it, generally, for the term much exceeding that possible in case of loans. The costs of such raising of resources are relatively lower, and diversification of investor base is possible as well. Bond issues form positive credit history of the company and enable improvement of reputation, as the company goes public.

3. Financing secured by pledge of investment portfolio in GBP and CHF

Now we offer our clients to obtain financing secured by pledge of investment portfolio in two new currencies. In addition to USD, EUR, and RUB currencies, now clients can obtain financing in the UK pounds (GBP) and Swiss francs (CHF).

The obtained financing secured by pledge of investment portfolio can be used to acquire new financial instruments or for other activities, without the need to sell the securities held in the portfolio.

4. Bond corporate actions on the same day

Earlier, the result of corporate actions was credited to clients’ accounts after receipt of the respective statement from our cooperation partner (depository). Such practice was applied to all types of financial instruments and all kinds of corporate actions.

From 18 May this year, ‘cash’ result of the corporate actions (e.g., coupon payments) regarding the bonds with rating BBB- and higher will be credited to the bondholder’s account on the same day, after receiving corporate action confirmation from the cooperation partner (depository) — almost on all occasions this happens one day earlier than before.

5. Convenient and clear Forward transactions

In June this year, Forward transactions will become much more convenient and clear for our clients. Henceforth, we will combine all client’s Forward transactions in one portfolio, to which multicurrency security account is linked. The funds held in this account and the total revaluation result of all made Forward transactions will serve as single collateral for all Forward transactions in the portfolio.

The information about made Forward transactions — confirmations, portfolio value, current and required collateral amount, and portfolio report — will be available to the clients in Internetbank. The clients will be able to choose the currency for the revaluation of the transactions portfolio, just like for the revaluation of financial instruments portfolio.

Like before, minimum amount of one Forward transaction is EUR 100 000, and maximum transaction term is 6 months. One side of the transaction should be in USD or EUR, and the other one — in EUR, USD, GBP, RUB, JPY, CHF, AUD, or CAD.

6. Accounting services for companies in several jurisdictions

Expanding the range of its offer, ABLV Corporate Services, which is a part of ABLV group, offers accounting services to companies in eight jurisdictions.

We render accounting services in accordance with the International Financial Reporting Standards (IFRS), ensuring transparency, quality, and international comparability of financial statements, thus providing the opportunity for the companies to raise financial resources from a wide range of investors.

7. Residence permits and change of tax residency

ABLV Corporate Services made another innovation for clients of ABLV group. Henceforth, we will provide advice on obtaining citizenship and residence permits of the United Arab Emirates as well. As it is known, so far the advice on this matter has been provided with regard to Latvia, UK, and Malta.

In addition to other advantages, residence permits provide the opportunity to change the tax residency, obtain tax benefits, enable free travel and issuance of documents for family members as well.

8. Payments in three new currencies

Developing our settlement services, from 1 June we offer the clients the opportunity to perform payments in three new currencies: United Arab Emirates dirham (AED), New Zealand dollar (NZD), and South Africa rand (ZAR). Upon implementation of this innovation, our clients can perform payments in 27 different currencies.

9. Contactless payments cards

Following the latest global trends in the payment card area, we implement contactless authorization in our payment cards.

New ABLV cards, which we started to issue to the clients in May, enable making the payments not just according to the known procedure of using the card’s chip or magnetic stripe but also by touching the card on a reader. Moreover, in case of small amounts there is no need to enter a PIN.

10. Travel insurance certificates in Internetbank

For convenience of our cardholders, as early as in June this year the travel insurance certificates will be available in Internetbank — both in the traditional one and that for iPad and iPhone devices. All certificates of insured persons, alongside the insurance description, coverage limits, and contact information of the insurer, will be displayed in the Internetbank and will be easy to print.

11. VISA cards in Luxembourg

Our subsidiary bank in Luxembourg — ABLV Bank Luxembourg — started issuing payment cards to its clients.

As we informed earlier, in summer 2015 ABLV Bank Luxembourg obtained the status VISA Associate Membership, and currently the bank issues VISA Gold and VISA Gold Business payment cards to the clients.

Design and technology of the Luxembourg cards is developed likewise those of ABLV Bank payment cards, including contactless authorization possibility. Round-the-clock Client Line provides telephone support to the cardholders.