ABLV Bank will redeem subordinated bond issue before maturity

Riga, Latvia, December 12, 2016, 09:00 / Investments

ABLV Bank decided to perform premature redemption of the subordinated bond issue that took place in 2011. On 22 December 2016, the bond issue ABLV SUB EUR 221221 (ISIN: LV0000800936) will be redeemed in full at the price of 100% of the face value.

The above mentioned subordinated bond issue was performed on 22 December 2011 under the First Bond Offer Programme, and its size was EUR 15 million at face value of the bonds. The bonds’ maturity term was set to be 10 years. According to the issue provisions, the bank may completely redeem the bonds before maturity starting from 22 December 2016. These bonds are included in the Baltic bond list of Nasdaq Riga.

The decision about the premature redemption of the subordinated bonds was taken as the bank’s capital adequacy ratio significantly exceeds the level provided by the regulator and allows the bank to decrease costs of interest rates related to subordinated capital attraction. The necessary admission required to perform the redemption of bonds has been received from the European Central Bank.

As we informed earlier, the bank initiated gradual replacement of long-term deposits with bonds at the end of 2011. Including the redeemed bonds, we have performed 39 public bond issues so far. Currently, 22 ABLV Bank bond issues are included in the Baltic bond list of Nasdaq 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.