Payment cards for children, euro payments free of charge, and other autumn innovations

Riga, Latvia, September 29, 2016, 10:28 / Banking

We would like to bring your attention to payment cards for children starting from age seven, payments in euros free of charge and changes in the execution of payments in US dollars, new bond issues, more profitable conditions for card credits, payment cards in US dollars in Luxembourg, a new electronic code card, and other innovations in products and services, which are or will be implemented in the following months for your convenience.

1.  Euro payments free of charge

Upon improving the range of our payment services, as of 1 October 2016, we are ready to offer for legal entities registered in Latvia and all individuals especially favourable conditions for making payments in euros. Further on, we will execute the following payments under EUR 1 000 free of charge, provided clients make them in the Internetbank:

  • intrabank payments,
  • outgoing standard and urgent payments within the European Economic Area.

It needs to be noted that the monthly fee for the maintenance of current accounts of Latvian legal entities and individuals is set to EUR 10. The new fee takes effect as of 1 January 2017. Though, the conditions for a fee relief remain the same: in case an individual has long-term credit obligations, a MasterCard Gold or Visa Gold credit card, or a premium card, or the total amount of funds held by this individual in deposits, savings accounts and securities positions exceeds EUR 50 000, the current account of this individual is maintained free of charge.

2.  Changes in execution of US dollar payments

As of 1 November 2016, we cancel express payments in US dollars and simplify the fees for the execution of US dollar payments made by foreign legal entities, namely, instead of the previous diversified fees we will apply unified ones, disregarding the country of the beneficiary bank and other parameters of the payment. Further on, a foreign legal entity will have to pay the following fees for an outgoing payment in US dollars made in the Internetbank:

  • standard payment — USD 100,
  • urgent payment — USD 150.

The fees for outgoing payments in US dollars made by legal entities registered in Latvia and all individuals remain the same: USD 40 for a standard payment and USD 60 for an urgent one.

3.  New ABLV Bank bond issues

We continue ABLV Bank bond issue program launched in 2011. So far, 36 public bond issues for the total face value of EUR 1.1 billion were performed. In the coming October, we will also perform three new bond issues under the Sixth Bond Offer Programme, which will be admitted to the regulated market, i. e. listed on the Nasdaq Riga Baltic List of Debt Securities.

The parameters of the coming issues are the following:

  • Coupon bond issue of USD 75 000 000
    (issue name: ABLV FXD USD 311018; ISIN: LV0000802163)
    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 31 October 2016, and the maturity date is 31 October 2018.
  • Coupon bond issue of EUR 20 000 000
    (issue name: ABLV FXD EUR 311018; ISIN: LV0000802171)
    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 31 October 2016, and the maturity date is 31 October 2018.
  • Discount bond issue of EUR 20 000 000 for raising subordinated capital
    (issue name: ABLV SUB EUR 311026; ISIN: LV0000802189)
    The issue size is EUR 20 000 000. The number of bonds is 200 000. The face value of one bond is EUR 100. Initial placement price: 83.047% of the face value. The issue date is 31 October 2016, and the maturity date is 31 October 2026. The bank may redeem the bonds before maturity starting from 31 October 2021.
    Annual interest rate of subordinated bonds:
    • from 31 October 2016 until 31 October 2021: fixed discount rate of 3.75%,
    • from 1 November 2021 until 31 October 2026: fixed coupon rate of 3.75% with coupon payment twice a year.

The subscription to the bond issues will be started on 29 September 2016 and will last until 24 October 2016.

4.  General terms of business for institutional clients

Taking into account the increase in the number of institutional clients, as well as best practice in servicing them, on 1 September 2016 the following new terms and conditions took effect regulating their business relations with the bank: General Terms of Business for Investment Companies and General Terms of Business for Credit Institutions.

The separate regulatory documents for investment companies and credit institutions are necessary because the types of activities of such clients, as well as required product range, differ from those peculiar to the majority of our clients.

The new regulations contain more detailed procedures of rendering particular services (for example, opening and maintaining correspondent account for credit institutions, rendering investment services to the clients of the mentioned investment companies and credit institutions). Several services which are less significant for this group of clients were excluded from the new regulations.

Institutional clients are credit institutions which would like to open correspondent accounts with our bank and investment companies (brokerage companies and investment management companies) which use brokerage and custody service.

5. Intraday overdraft for loro banks

In addition to new terms and conditions of collaboration with credit institutions, we offer them a new service, namely, the intraday overdraft for loro banks.

The intraday overdraft is a renewable credit limit associated with the correspondent account of a loro bank. Overdraft is used for clearing operations during one day and can be granted in euros or US dollars.

6. Payment cards for children starting from age seven

Aiming at improving financial knowledge and skills of the younger generation, we offer our clients to open card accounts for their children starting from age seven and receive a payment card. It is a great possibility for children to gain financial experience during their first collaboration with the bank which will simultaneously teach them how to plan and organize their expenses and help parents to manage the expenses of their child.

For clients’ children aged 18–25 we are ready to open and maintain a current account free of charge, provided they already had a card account opened and a payment card in use prior to turning 18 years old.

7. Profitable conditions for card credit

We keep improving our payment card services; therefore, as of 1 October 2016, the amount of the collateral deposit for a secured payment card credit will be reduced from 125% to 100%.

At the same time, we simplify and expand credit limits for our credit and premium cards. Further on, the allowed maximum credit amounts will be the same for all currencies, EUR, USD and GBP, in terms of numbers:

  • Classic and Business cards: 10 000,
  • Gold, Gold Business and Platinum cards: 50 000,
  • Infinite cards: 150 000.

8. ABLV Bank Luxembourg payment cards now also in US dollars

We previously announced that our subsidiary bank, ABLV Bank Luxembourg, S. A., had started to issue payment cards earlier this year. The bank already issues VISA Gold and VISA Gold Business cards in euros to its clients, who will be able to additionally benefit from payment cards in US dollars as of 1 October 2016.

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.

9. Information on courier mail in Internetbank

Taking into consideration the great volume of courier mail to our clients, we have introduced a new registering and reporting system. From now on, clients can receive notifications in the Internetbank regarding the mail addressed to them.

Should the mail be dispatched using DHL services, the notification in the Internetbank will contain the link to DHL shipment tracking system allowing a particular client to follow the route of the mail.

10. New electronic code card model — Digipass GO 101

We started to issue electronic code cards of the new generation, Digipass GO 101, for our clients’ convenience. The new card benefits from e-paper technology and, compared to the previous LCD technology, ensures better visual representation of digits and longer battery life.

Our new electronic code card model features:

  • bigger screen with bigger and brighter digits,
  • reduced energy consumption leading to longer battery life,
  • tactile switching on and off (clicking the button).

The term of use of the previous electronic code card model, Digipass GO 100, shall be unlimited, however, further on, we will issue only the new model.