8 September this year was the closing date for submitting applications for purchasing subordinated bonds issued under third Aizkraukles Banka (AB.LV) emission. Yesterday (15 September), settlement under the bond purchase has been performed. The applications received exceeded the bond issue amount by 16%. The bonds have been purchased both by individuals and corporate entities.

In 2008, the bank successfully arranged first two issues of subordinated bonds. The issues have been performed in US dollars and euro, and their total amount equalled USD 20 million and EUR 12.5 million respectively.

This time, the bank issued 200 000 bonds in total, with each bond’s face value being equal to USD 100. The overall amount of the bond issue totalled USD 20 million. The maturity date of the bonds is 15 September 2020.

Until 15 September 2015, the bond yield will be 6.5% p.a. Whereas starting from 16 September 2015 and until the maturity date, the bonds not redeemed yet will yield coupon rate of 8% p.a. Coupon interest will be paid once a year.

The funds raised as a result of the bond issue will be included in the bank’s Tier 2 capital, enabling further development of the bank’s financial services.

Aizkraukles Banka is the largest independent private bank in Latvia with controlling interest owned by Latvian shareholders. The bank’s major shareholders — Oļegs Fiļs, Ernests Bernis and Nika Berne — hold 85.90% of the bank’s share capital. Aizkraukles Banka Group includes brokerage joint stock company “AB.LV Capital Markets”, investment management joint stock company “AB.LV Asset Management”, “AB.LV Transform Partnership” LP, “AB.LV Transform 1” Ltd, JSC “AB Konsultācijas”, “AB.LV Corporate Services” Ltd, “New Hanza City” Ltd, “Elizabetes 21a” Ltd, and other companies.