On Tuesday, October 8, “Bigbank”, which is rapidly growing corporate and housing loans in Estonia, Latvia and Lithuania volumelaunching a new public offering of bonds with a total volume of three to eight million euros, informs Martins Lants, chairman of the board “Bigbank”.
From October 8 to October 18, investors can apply for “Bigbank” 10-year subordinated bonds with an annual interest rate of 6.5%, payable quarterly.
In addition, to ensure liquidity and free trade, “Bigbank” plans to list the bonds on the list of Baltic bonds on the stock exchange “Nasdaq Tallinn”.
“Bigbank” continues its steady growth in the field of housing and corporate loans and gradually begins to offer everyday banking services as well. The current bond offering is the third in our €30 million bond program aimed at strengthening and optimizing the group’s capital structure. We intend to use the proceeds from the bond issue to cover the additional credit risk arising from the growth of the group’s corporate and housing loan portfolio in Estonia, Latvia and Lithuania, as well as to comply with regulatory requirements capital,” explained Martins Lants. , chairman of the board “Bigbank”.
The chairman of the bank’s board also said that Bigan took into account the current decline in base interest rates in Europe and the interest rate context created by the recent public issuance and trading of Estonian government bonds when they were determining the bond interest rate.
“Bigbank” has a very diversified and profitable loan portfolio that includes residential and consumer loans for individuals and business rental items, as well as business development and investment loans. We are a modern, well-managed bank that operates effectively through digital channels. We have always paid interest rates to our investors that are among the highest in the market, have offered competitive loan yield offers, and in recent years have had three bond issues successfully offered to investors who exceeded the first offer, with a total volume of EUR 47 million. “Lants said.
“Bigbank” has more than 30 years of history and is a commercial bank with Estonian capital. The total amount of the bank balance on June 30, 2024 was 2.6 billion euros and the equity was 252.8 million euros. The bank operates in nine countries, has more than 150,000 active customers and more than 500 employees.
The rating agency “Moody’s” has assigned a “Ba1” rating to “Bigbank” long-term investments in foreign and local currency, as well as a nominal basic credit rating (BCA) “Ba2” and modified BCA “Ba2”.
The main conditions regarding the public offering of bonds
The basic level of the public offer launched on October 8 is three million euros, which can be increased to eight million euros in case it exceeds the first offer. In this offer, “Bigbank” offers up to 3,000 unsecured subordinated bonds with the name “EUR 6.50 BIGBANK ALLUTATUD VÕLAKIRI 24-2034 / EUR 6.50 subordinated bonds “Bigbank” 24-2034″, and e nominal value of bonds 1,000 each. , the maturity date is October 23, 2034, and with a fixed interest rate of 6.5% per annum, payable quarterly.
If the initial offer is exceeded, “Bigbank” has the right to increase the offer size to 8,000 bonds. Also, “Bigbank” has the right to cancel the offer in the amount without notice. Unsecured subordinated bonds are offered at a price of EUR 1,000 per bond.
You can apply for bonds from Tuesday, October 8, 2024, at from 10.00 to October 18, 2024 at 15.30 The offer is for private and professional investors in Estonia, Latvia and Lithuania.
Sub-bonds are Bigbank’s unsecured debt obligations to investors. Bond subordination means that in the event of a liquidation or bankruptcy of Bigbank, all claims arising from subordinated bonds will cease to exist and will only be satisfied after all known non-subordinated claims -satisfied to be fully satisfied according to applicable laws and regulations.
Similarly, in the case of sub-bonds, the risk of cancellation or modification of obligations and claims must be taken into account (“bail-in” risk). Specific information about the offer is provided in the Prospectus and the summary for the third offer.
The overall objective of this offer is to strengthen the capital structure of the Bigbank Group and provide sustainable access to additional capital to finance the budget and growth of the Bigbank Group as set out in the Bigbank Strategic Plan.
The bank plans to use the proceeds from the bond issue to cover the additional credit risk arising from the growth of the corporate and housing loan portfolio of the “Bigbank” group in Estonia, Latvia and Lithuania, as well as comply with the specified capital requirements. in the governing acts.
“Bigbank” will submit an application to “Nasdaq Tallinn AS” to list sub-bonds in the Baltic bond list of the exchange and introduce them to trading. The expected enrollment and enrollment date is on or around October 24, 2024.
The prospectus (including annexes 1 and 2), the terms and conditions of the bond, the final terms of the third offer and a summary of the third offer prospectus have been published and are available in electronic form on the “Bigbank” website https. : //investor.bigbank.eu/lv and On the website of the Financial Supervisory Authority of the Republic of Estonia https://www.fi.ee. In addition to the above, translations of the summary of the prospectus of the third offer into Estonian, Latvian and Lithuanian are available in electronic form on the “Bigbank” website https://investor. bigbank.eu/lv.
Before investing in “Bigbank” unsecured subordinated bonds, we ask you to familiarize yourself with the summary of the prospectus (including its Annexes 1 and 2 ), the summary of the third offer, the terms of the bonds and the final terms of the third offer and, if necessary, we invite you to consult an expert.
Additional information:
Argo Kiltsmans
Board Member
Phone: +372 53 930 833
www.bigbank.ee
Important information
This announcement is an announcement of securities in accordance with Regulation No. 14 June 2017 of the European Parliament and the Council of Europe. 2017/1129/EU and cannot be considered as an offer to sell unsecured subordinated bonds of “Bigbank” or as an invitation to apply for subordinated bonds. Each investor should make an investment decision based on the information contained in the Prospectus (including Supplements 1 and 2), its third summary, the terms and conditions of the bonds, as well as the final terms of the third tranche of bonds. . The approval of the prospectus by the financial supervisory authority for the “Bigbank” unsecured subordinated bond proposal is not understood.
2024-10-09 06:42:00
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