ABLV Bank Arranged Bond Issue for Baltic RE Group

Riga, Latvia, December 12, 2016, 13:33 / Investments

ABLV Bank successfully arranged a bond issue for Baltic RE Group, a real estate company. As the arranger of the issue, the bank drafted all necessary documents and performed initial offering.

The value of the issue amounted to 4 million euros. Initial placement price: 100% of the face value. The issue date is 12 December 2016, and the maturity date is 12 December 2020. The bonds are to be admitted to the regulated market, the Baltic Bond List of Nasdaq Riga, in the short term.

Upon bond subscription, the number of bonds applied for exceeded the available number of bonds by more than 25%, which clearly demonstrates investors’ high interest. Eventually, 42 investors purchased the bonds during the initial offering. The issuer will use the acquired funds for purchase of commercial real estate in central Riga, reconstruction and repair works in the properties, etc.

“We are extremely pleased how well the issue was received by the investors, whose requests quickly exceeded the available bonds,” says Giovanni Dalla Zonca, Chairman of Board of Baltic RE Group. “We consider such result as a tangible demonstration of appreciation for the long-term investment strategies of the company and for the achievements in setting up a portfolio of truly core properties in the Baltics”.

“We’re satisfied that during the initial offering we acquired more than 40 investors in quite a short time; the total number of their applications significantly increased the available number of bonds. This demonstrates our clients are interested in financial instruments and investments of such kind. The issue results also confirm our ability to pass the experience we gained in issuing our bonds to the clients, thus helping them to raise necessary funds for the development of their business,” says Māris Kannenieks, Member of Board of ABLV Bank.

The arrangement of the bond issue is a natural development of collaboration between ABLV Bank and Baltic RE Group. In 2015, one of the largest transactions in the Latvian commercial real estate market took place, where ABLV Bank provided 28-million-euro financing for the holding portfolio consisting of trophy historic buildings located in the prime high street location in Old Riga.

The product range of ABLV Bank was diversified by the arrangement of bond issues for clients as the result of large experience the bank gained in issuing its own debt securities. So far, we have performed 39 public bond issues for the total value exceeding 1 billion euros.

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. Baltic RE Group, AS is investing in the Baltics with a long-term view, highly specific vision and a non-speculative approach for the creation of sustainable value.

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.