ABLV Bank, AS completed two bond issues for the sake of raising subordinated capital under the Third Bond Offer Programme; the size of the issues was USD 20 million and EUR 20 million.

Discount bond issue of USD 20 000 000 for the sake of raising subordinated capital

(issue name: ABLV SUB USD 270623; ISIN code: ISIN LV0000801173)

The issue size is USD 20 000 000. The number of bonds is 200 000. The face value of one bond is USD 100. Initial placement price: 81.0362% of the face value. The issue date is 27 June 2013, and the maturity date is 27 June 2023.

Annual interest rate of subordinated bonds:

• from 27 June 2013 till 27 June 2018 – fixed discount rate of 4.25% calculated twice a year, without coupon payment;
• from 28 June 2018 till 27 June 2023 – fixed coupon rate of 6.00% with coupon payment twice a year.

Discount bond issue of EUR 20 000 000 for the sake of raising subordinated capital

(issue name: ABLV SUB EUR 270623; ISIN code: ISIN LV0000801181)

The issue size is EUR 20 000 000. The number of bonds is 200 000. The face value of one bond is EUR 100. Initial placement price: 81.0362% of the face value. The issue date is 27 June 2013, and the maturity date is 27 June 2023.

Annual interest rate of subordinated bonds:

• from 27 June 2013 till 27 June 2018 – fixed discount rate of 4.25% calculated twice a year, without coupon payment;
• from 28 June 2018 till 27 June 2023 – fixed coupon rate of 6.00% with coupon payment twice a year.

The bonds in USD were acquired by 12 customers of the bank, and the bonds in EUR – by 36 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 and sold. 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.

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.