ABLV Bank successfully placed the first public issue of bonds

Riga, Latvia, December 22, 2011, 10:55 / Investments

Underwriting to ABLV Bank, AS first public offer of bonds has been completed. The investors were offered bonds in EUR and USD with maturity term of 2 years.

At the same time, subordinated bonds in EUR have been issued, and their maturity date is 22 December 2021. The bank has successfully issued subordinated bonds before, offering those to a limited group of customers. And since the bank’s customers demonstrated great interest in fixed-income investments, it was decided to perform new issues and offer the bonds in a regulated securities market. This issue of the bonds continues implementation of the strategic decision to gradually substitute the customers’ long-term deposits with bonds issued by the bank.

ABLV Bank, AS Board approved final results of all three issues performed, and those were recorded in Latvian Central Depository: two-year bonds in EUR with total amount of EUR 10 million (annual coupon rate EURIBOR 6M + 1.50%), two-year bonds in USD with total amount of USD 30 million (annual coupon rate LIBOR 6M + 1.50%), subordinated bonds in EUR with discount rate of 4.8%, the total amount of which is equal to EUR 15 million at their face value.

The bonds were offered and sold to customers of ABLV Group. More than 80 customers participated in the initial placement. In the following three months, it will be possible to start trading in these bonds at stock exchange as well. Admitting the bonds to the regulated market will increase liquidity of these financial instruments and make those available to investment funds, insurance companies and other professional investors. The bank plans to continue issuing bonds in the future.

ABLV Bank Chairman of the Board Ernests Bernis is satisfied with the achieved results: “At present, when investor mood ranges from great caution to pessimism, the debt securities market is closed for most world banks. However, issue of our bonds was more than successful. This evidences customers’ trust and confidence in our bank, as well as future prospects for Latvia in general”.

All information about performed bond issues – issue prospectus, series and registration numbers, rates on two-year bonds in EUR and USD – is available at the bank’s home page.

ABLV Bank is the largest independent private bank in Latvia. The bank’s majority shareholders – Oļegs Fiļs, Ernests Bernis and Nika Berne – hold 85.90% of the bank’s share capital. ABLV Group includes ABLV Bank, AS; ABLV Capital Markets, IBAS; ABLV Asset Management, IPAS; ABLV Private Equity Management, SIA; ABLV Transform Partnership, KS; ABLV Consulting Services, AS; ABLV Corporate Services, SIA; ABLV Luxembourg, S.A.

Ilmars Jargans
Head of Public Relations Department
+ 371 6777 5296