Mobile Digipass, savings for children, and other winter innovations

Riga, Latvia, January 26, 2017, 17:22 / Banking

New issues of ABLV Bank bonds, tax reliefs under Russian securities, savings for children, investments in commercial properties, corporate finance advisory, flexible Internetbank management fitting clients’ business scale, and new mobile Digipass — these are the main improvements from many in our products and services, which are implemented or forthcoming for clients’ convenience.

1.  ABLV Bank bond news

Under the Sixth Bond Offer Programme, we will perform two new issues of the coupon bonds, which are planned to be admitted to the regulated market — Nasdaq Riga Baltic Bond List. The subscription to the new bond issues will be started on 26 January 2017 and will last till 20 February 2017. Parameters of the issues are stated below.

  • Coupon bond issue of USD 75 000 000
    (issue name: ABLV FXD USD 270219; ISIN: LV0000802239)
    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: 2.25% with coupon payment twice a year. Initial placement price: 100% of the face value. The issue date is 27 February 2017, and the maturity date is 27 February 2019.
  • Coupon bond issue of EUR 20 000 000
    (issue name: ABLV FXD EUR 270219; ISIN: LV0000802247)
    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: 0.75% with coupon payment twice a year. Initial placement price: 100% of the face value. The issue date is 27 February 2017, and the maturity date is 27 February 2019.

We have also simplified “Brokerage Services” rates and charges on transactions in the bonds issued by ABLV Bank. From 1 March this year, the standard charge for purchasing or selling straight and subordinated bonds will be the same — USD 50 or EUR 50 per transaction, according to the currency of the bond issue. The charge will not be applied to the transactions during initial placement of the bonds.

From 1 March, in “Financial Instruments’, Precious Metals’ and Cash Accounts” rates and charges the charge for holding ABLV Bank straight bonds under the bank’s custody will be changed as well, and it will be equal to 0.06% p.a. Whereas custody of subordinated bonds will be ensured free of charge, as before. The charge for financial instruments custody is withheld once per month.

2.  Transaction order is valid up to 60 days now

To improve our investment services, from 15 January we have introduced changes to the transactions in financial instruments. ABLV Capital Markets, IBAS General Terms of Business were amended accordingly. Further on, the clients can make orders for purchase or sale of financial instruments (also at particular price) setting the order validity of up to 60 calendar days, instead of 10 days. If the order validity is not set, the order will be valid during the particular trading day only.

3.  Wider opportunities of financing against pledge of investment portfolio

From 1 February this year, more attractive possibilities of financing against pledge of investment portfolio will be offered to our clients, since we have expanded the range of bond categories that can be pledged. We changed “Financing Against Pledge of Investment Portfolio” rates and charges accordingly.

The category of government bonds has been broadened by adding the bonds of central banks and supranational organizations. Therefore, the credit limit under these bonds has been increased to 65–96% of the market value.

Moreover, a new category has been introduced, in which government-guaranteed corporate bonds the issue size of which is USD 100 million and more are included — the financing conditions of government bonds will be applied to these instruments.

4.  Tax reliefs under Russian securities

Henceforth, our clients who have financial instruments (stocks, bonds, ETFs) of the issuers registered in the Russian Federation in their investment portfolios are offered the opportunity of applying reduced tax rates on coupon and dividend payments set in legal enactments, according to the tax residence declared by the client.

Tax rates will be applied to the said securities in accordance with provisions of the international agreements on avoidance of double taxation.

For the said tax reliefs to be applied, the client should supply the bank with tax documents and has to complete new edition of the questionnaire for receipt of investment services.

5.  Savings for children

Developing the range of services intended for children, in February we will start offering two new services for making savings for the child’s future — investment portfolios and savings accounts for children, allowing savings in the form of financial instruments or funds accordingly.

Clients will be able to form an investment portfolio for their children by transferring the shares of ABLV mutual funds to the portfolio. The transfers can be performed by the child’s parents or guardians, provided they hold a current account and investment portfolio with ABLV Bank. The accessibility of such funds will be limited, and those will become available to the child upon reaching 18 years of age.

Just like an investment portfolio, the child's (EXTRA) savings account will enable protection of the funds intended for the child’s future. The child will be able to withdraw funds from the savings account upon reaching the age of 18 years. Before that, only the child’s parents or guardians will be able to manage the account and deposit funds to the same. For these services we changed “Current Account” and “Deposits, Savings Accounts and Cover Accounts” rates and charges.

New products for children are an addition to the possibility of opening card accounts for children after they reach the age of 7 years and obtaining a payment card for them, which was presented in our Autumn 2016 product release.

It should be noted that a child holding a savings account, investment portfolio, or payment card with ABLV Bank will be offered current account opening free of charge upon reaching the age of 18 years.

6. Investments for development of cities

Having gained the new name and business goals, ABLV group company for investments in commercial property, New Hanza Capital, AS, actively started its operations.

The company was founded in 2006 for managing Elizabetes Park House real estate development project. In 2015, it gained new business goals: to invest its own funds and the funds of third parties in commercial property ensuring a long-term increase of capital, to increase rental incomes and property value in the long-term. Further, at the end of 2016, the company gained a new name, New Hanza Capital, AS.

New Hanza Capital, AS aims at creating a long-term commercial property portfolio and collaborating with a team of professionals for its management. The company acquires commercial properties with obvious value growth potential located in the cities with clear prospects for further economic development.

Among current target cities for investments, there are Riga, Munich, Hamburg and Luxembourg; however, the company looks into the possibility to invest in other cities as well. The company also considers offering management of third parties’ funds in the future.

In January this year, New Hanza Capital, AS concluded another development stage by introducing its new brand. The graphic logo — a stylised wall — is the symbol of stability of the company and investment reliability. A castellation wall hints at the Hanseatic League, mentioned in the name of the company. The company has chosen its main domain name as its abbreviation with the extension of new generation,

For the implementation of its business goals, the company plans to raise additional funding also outside of ABLV group, including by considering the option of public bond and stock issues.

7. New charges on incoming USD payments

On 1 April this year, changes to “Payments and Currency Exchange” rates and charges will become effective. For foreign legal entities we will introduce the charge of USD 10 on crediting an incoming USD payment the amount of which exceeds USD 100 000. On other instances, as well as in case of crediting any amount received from our subsidiary bank ABLV Bank Luxembourg, S.A., the payment will be credited free of charge.

New charge is introduced since USD payment processing becomes increasingly more complex, because of the growing compliance requirements.

8. Corporate finance advisory

ABLV group has substantial experience in providing various services to our corporate clients, including advice on business structuring, advising on and arrangement of bond issues, as well as other similar services requiring involvement of highly qualified experts in the field.

To expand the range of our professional advisory services, a new company was added to ABLV group — ABLV Corporate Finance, SIA, which will offer professional assistance with preparation for and arranging additional debt or equity financing, advice on M&A transactions, divestures and business valuation.

9. Currency exchange at desired rate

Considering demand, from 1 February, we are ready to offer limit orders to our clients.

Limit order is an order for currency purchase and sale at the rate stated by the client upon the market rate reaches the level agreed upon with the bank. The maximum validity period of such order is 60 calendar days, and the minimum transaction amount is EUR 100 000 or an equivalent amount in another currency. For this service we change “Payments and Currency Exchange” rates and charges.

10. Loans to individuals for their business financing

From the beginning of this year, we have expanded the lending possibilities offered to individual clients by providing financing for their business secured by mortgage. The individuals having stable income (salary, dividends, business revenues) will be able to obtain loans in EUR or USD for up to 15 years. The loans can be secured by property — an apartment or a private house.

11.  Flexible Internetbank management fitting clients’ business scale

Continuing the series of Internetbank development projects, from 1 February this year we are ready to completely implement new functionality of our Internetbank concerning the Internetbank use by the clients having several representatives and the users representing several clients.

Now we can ensure the following:

  • separate Internetbank access for each representative of the client;
  • multilevel signature;
  • multi-client access to one Internetbank for the representative of several clients;
  • simultaneous use of several authorization tools by one representative;
  • possibility to create additional user ID and flexible configuration of rights.

Connection of Internetbank to all representatives of the client to those who are authorised to operate the accounts and are willing to obtain it is a significant, demanded and promising change in the remote account management. For example, in a company with three representatives, each representative will get his own Internetbank and own Digipass with access to the company accounts.

Depending on the distribution of powers, each representative will be able to operate the accounts either independently, or together with one or two other representatives. Each of them will have a chance to see, who exactly and when has signed any payment or application, as well as how many signatures should be gathered until the document submission to the bank.

The linking of Internetbank to particular users — individuals — will also allow to simplify uniting of access to the accounts of several clients in one Internetbank.

A representative, who has the signature rights on behalf of several clients, will be able to do it, submitting the application in Internetbank and then using only one common Internetbank and Digipass.

Besides that, each representative of the client will have a chance to receive as many authorisation tools as necessary, to create additional user codes, to link Digipass to them and to restrict the rights — by clients, accounts, agreements, investment portfolios, available functions and many other aspects of work in Internetbank.

All these complex changes are aimed at organising, both flexibly and transparently, the system of remote management of the client’s funds, providing the client an opportunity to decide on his own about the work rules of his personnel in Internetbank.

12. New authorization tool — mobile Digipass

Enabling our Internetbank users to use several authorization tools at the same time, from 6 February this year we offer them to independently acquire absolutely new mobile Digipass and use it as an additional authorization tool. The price of mobile Digipass is 50 EUR for foreign clients.

Mobile Digipass is integrated in our Internetbank applications for iPhone and iPad. It can be acquired in the Internetbank and then activated on a mobile device. One mobile Digipass can be activated and used on several mobile devices simultaneously.

It should be noted that mobile Digipass can be easily used as follows:

  • in iPhone and iPad application to log in to the Internetbank and sign documents there;
  • to use ordinary Internetbank on PC with Apple device used as code calculator, even without Internet access.

May 2017 be fruitful!