Mortgage Portfolio of ABLV Bank in Liquidation to be Acquired by Citadele

Riga, Latvia, March 12, 2021, 10:19 / Banking

ABLV Bank in liquidation signed an agreement on transfer of undertaking with Citadele bank about transfer of majority of mortgage portfolio. The portfolio consists of several thousand mortgage loans with a total exposure above EUR 170 million.

Given the materiality of the deal, the planned completion date is in the second half of this year, and all customers affected will be contacted in advance with the relevant information including how repayments should be made.

The agreement stipulates that customer loan agreements with ABLV Bank, AS in liquidation, will maintain their current terms until the end of the contract.

“One of our main aims has been to recoup the loans in order to collect the funds we need to satisfy claims of creditors. We are therefore pleased that one of our most valuable assets—a significant portion of our mortgage portfolio—as well as future customer service will be taken over by Citadele Bank, who also disbursed state-guaranteed compensation to ABLV’s former customers,” emphasises Andris Kovaļčuks, Liquidator, ABLV Bank, AS in liguidation.

“We are a Baltic bank with local footprint, and our aim is to offer the most up-to-date financial services with a unique service approach. The acquisition of this high-quality portfolio is another step in our growth journey and our commitment to support the local customers. We will be pleased to offer our new customers access to our full range of financial services and products with special terms and conditions,” explains Johan Åkerblom, Chairman of the Management Board, Citadele Bank.

Current loan customers of ABLV Bank do not have to change anything in their activities, and they will be provided with more specific instructions as soon as the transaction is finalised in the second half of 2021.

Superia acted as sole financial adviser to the seller.

About ABLV Bank, AS in liquidation

On 26 February 2018, the meeting of shareholders of ABLV Bank, AS took a decision about voluntary liquidation of the bank. Before the commencement of this voluntary liquidation, the bank was one of the largest loan provider in Latvia, ensuring mortgage loans for households and financing for commercial companies, thus contributing to development of various industries. At that time, the total loan portfolio of the bank amounted to 1 billion euros.

About Citadele Bank

Citadele’s mission is to modernise the banking sector and offer more opportunities to clients and businesses throughout the Baltics. Alongside classic banking services, Citadele offers its clients a range of services based on next-generation financial technology, including its modern app, contactless payments and instant payments, and finally, being the first in the Baltics to introduce opening an account with a selfie, payment rings and payments to mobile numbers.

Citadele is the second largest bank in Latvia by assets. The Citadele group is managed from Latvia. Its subsidiaries and branches operate in Latvia, Lithuania and Estonia.