ABLV Bank Issues New Subordinated Bonds

Riga, Latvia, November 1, 2017, 17:20 / Investments / Inside information

Given the high demand for bonds, ABLV Bank has decided to perform a new subordinated discount bond issue, its total size amounting to USD 40 million at face value.

The issue shall be performed under the Seventh Bond Offer Programme, and the bonds are planned to be included in the regulated market — Baltic bond list of Nasdaq Riga.

Parameters of the issue:

Discount bond issue of USD 40 000 000 for the sake of raising subordinated capital
(issue name: ABLV SUB USD 171127; ISIN: LV0000802361)

Issue size: USD 40 000 000. Number of bonds: 400 000. The face value of one bond is USD 100. Initial placement price is 81.0362% of the face value. The issue date is 17 November 2017, and the maturity date is 17 November 2027. The bank may redeem these bonds before maturity starting from 17 November 2022. Annual interest rate of subordinated bonds:

  • from 17 November 2017 until 17 November 2022 — fixed discount rate of 4.25%;
  • from 18 November 2022 until 17 November 2027 — fixed coupon rate of 4.25% with coupon payment twice a year.

The subscription to the abovementioned bond issue will begin on 2 November 2017 and will last until 13 November 2017

The Bank’s public bond issue programme was started in 2011, and under it, we have already executed 46 public bond issues, their total size amounting to EUR 1.45 billion at face value.

This announcement contains inside information.

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 87.03% 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; Pillar Development, SIA, and other companies. ABLV Consulting Services has representative offices in Moscow, St. Petersburg, Vladivostok, Kiev, Odessa, Minsk, Almaty, Baku, Tashkent, Hong Kong, and Limassol.