ABLV Bank Arranges Bond Issue for Real Estate Holding

Riga, Latvia, November 14, 2016, 15:48 / Banking

ABLV Bank launched its bond issue programme in 2011. In all these years, we have accumulated large experience and knowledge of issuing debt securities — so far, we have arranged 39 public bond issues for the total value exceeding 1 billion euros. Therefore, in June 2016, we announced a new service, i. e. now the bank offers full service in the area of bonds to its clients and business partners.

“Bond issue is an alternative source of raising financing which allows a company to launch its development plans right away. The engagement of our bank as an arranger may vary depending on the requirements of a particular client. We can range from drawing up the issue prospectus to performing the issue, ensuring custody and accounting of the securities, rendering services under corporate events, and communicating with respective authorities,” says Māris Kannenieks, ABLV Bank Chief Financial Officer.

Under the new service, ABLV Bank will perform an unsecured bond issue for Baltic RE Group, a real estate holding company and a leader in investing in the high street retail properties. ABLV Bank and Baltic RE Group already have a long history of successful cooperation. The anticipated value of the issue amounts to 4 million euros. The bonds are to be admitted to the regulated market, the Baltic Bond List of Nasdaq Riga.

The subscription to the bonds will begin on 15 November 2016 and will last until 2 December 2016. The parameters of the issue are as follows:

  • Coupon bond issue of EUR 4 000 000
    (issue name: BREG FXD EUR 121220; ISIN: LV0000802197)
    The number of bonds is 4 000. The face value of one bond is EUR 1 000. The annual interest rate is fixed: 6.15% with coupon payment twice a year. Initial placement price: 100% of the face value. The issue date is 12 December 2016, and the maturity date is 12 December 2020. The issuer is entitled to premature redemption.

“Оnce again, we found ABLV Bank to be a true partner ready to share our projects and entrepreneurial vision. With their support, we have been able to set up innovative financial solutions which exactly matched our expectations. I truly believe in investing in high-end retail properties in the Baltics, and specifically in Riga, as I’m strongly convinced that they have potential. This bond issue will provide the company with necessary resources, along with the support of the partners. We are going to carry out new investment plans in our specific segment, namely, to purchase unique properties with a large potential for value growth and to invent new possibilities for the high street retail in the area”, says Giovanni Dalla Zonca, the Chairman of the Board of Baltic RE Group.

Bond issues allow company to raise additional funds for the term much exceeding that possible in case of loans. Moreover, bond issues form positive credit history of the company and enable improvement of reputation, as the company goes public.

Baltic RE Group, AS business lines are purchase and sale of real estate, its lease and management. The holding is the largest lessor of all-purpose high quality commercial areas with state-of-the-art facilities in Old Riga.

ABLV Bank, AS is the largest independent private bank in Latvia. The bank’s major shareholders — Oļegs Fiļs, Ernests Bernis and Nika Berne — directly and indirectly hold 86.55% 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, Vladivostok, Kiev, Odessa, Minsk, Almaty, Baku, Tashkent, Hong Kong, Limassol, and New York.