ABVL Bank, AS in Liquidation Is Redeeming only the Bonds in its Ownership Issued by It

Riga, Latvia, June 28, 2018, 17:02 / Investments

On 26 June 2018, Liquidation Committee of ABLV Bank, AS in Liquidation made a decision to redeem the bonds issued by the bank, which were unsold under initial placement and purchased on the market and which are in ownership of the company in liquidation. The redemption of the bonds is going to take place on 4 July 2018.

This premature redemption is being carried out only regarding the part of bonds that is owned by the bank. This is a technical operation that was initially included in the voluntary liquidation plan of the bank. The premature redemption does not refer to the bank’s bonds that are in the clients’ securities portfolios.

Redemption of bonds is carried out in accordance with the rights of the issuer provided in the Bond Issue Prospectus to redeem a part of bonds unsold under the initial placement or purchased on the secondary market to the bank’s portfolio.

The redemption results in:

  • decrease of the number of bonds of the company in liquidation being in public hands;
  • cutting the expenses of the bank as an issuer in terms of paying monthly fees to Nasdaq CSD.

In no way this premature redemption affects the process of accepting the creditors’ claims. The creditors, including the bondholders, should lodge their claims by 18 September 2018, indicating the face value of the bonds in their claims.

We emphasize once again that this decision does not imply redemption of the bank’s bonds held in the clients’ securities portfolios. The Liquidation Committee of ABLV Bank, AS in liquidation ensures satisfaction of the creditors’ claims in accordance with the procedures provided by the law. It means that no exceptions for any groups of creditors will be allowed.

In the result of this technical operation, there are bonds in the securities portfolio of ABLV Bank, AS in liquidation being redeemed of total face value amounting to EUR 75 million and USD 104 million. The total volume of the unredeemed bonds of the bank, expressed in EUR, which also constitutes the remainders in the clients’ securities portfolios in the bank’s balance as at 31 March 2018, exceeds EUR 287 million of straight securities and above EUR 125 million subordinated securities