Continuing gradual replacement of long-term deposits with bonds, ABLV Bank, AS, performed another bond issue under the Third Bond Offer Programme. This time, there were straight bonds worth USD 50 million and EUR 20 million issued.
Coupon bond issue of USD 50 000 000
(issue name: ABLV FXD USD 210615; ISIN code: ISIN LV0000801199)
The issue size is USD 50 000 000. The number of bonds is 50 000. The face value of one bond is USD 1 000. The annual interest rate is fixed: 1.725% with coupon payment twice a year. Initial placement price: 100% of the face value. The issue date is 21 June 2013, and the maturity date is 21 June 2015.
Coupon bond issue of EUR 20 000 000
(issue name: ABLV FXD EUR 210615; ISIN code: ISIN LV0000801207)
The issue size is EUR 20 000 000. The number of bonds is 20 000. The face value of one bond is EUR 1 000. The annual interest rate is fixed: 1.725% with coupon payment twice a year. Initial placement price: 100% of the face value. The issue date is 21 June 2013, and the maturity date is 21 June 2015.
The bonds in USD were acquired by 41 customers of the bank, and the bonds in EUR – by 24 customers. Investments in bonds allow customers to receive higher return than that under deposits and also ensure wider transaction opportunities — the securities can be purchased, sold or used as collateral to obtain financing.
Like previous bond issues, these ones will be also included in NASDAQ OMX Riga list of debt securities in order to begin public quotation of the bonds and make those available to mutual funds and other professional investors.
As we informed earlier, subscription to two more issues of our bonds is currently going on: these are bond issues for the sake of raising subordinated capital, amounting to USD 20 million and EUR 20 million.
After the
issues, the investors own ABLV Bank, AS bonds worth LVL 215 million. Since the end
of 2011, we have already performed 14 bond issues in total.
ABLV Bank, AS is the largest independent private bank in Latvia. The bank’s majority shareholders — Oļegs Fiļs, Ernests Bernis and Nika Berne – directly and indirectly hold 86% of the bank's voting share capital. ABLV Group includes ABLV Bank, AS; ABLV Bank Luxembourg, S.A.; ABLV Capital Markets, IBAS; ABLV Asset Management, IPAS; Pillar Holding Company, KS; ABLV Consulting Services, AS; ABLV Corporate Services, SIA; New Hanza City, SIA, and other companies. ABLV Group has representative offices in Moscow, St. Petersburg, Yekaterinburg, Kiev, Odessa, Minsk, Almaty, Dushanbe, Baku, and Tashkent.