ABLV Bank will redeem subordinated bond issue before maturity

Riga, Latvia, September 14, 2015, 08:35 / Investments

ABLV Bank decided to perform premature redemption of the subordinated bond issue that took place in 2010. On 15 September 2015, USD bonds (ISIN: LV0000800845) will be redeemed in full at the price of face value.

The above mentioned subordinated bond issue was performed on 15 September 2010, and its size was USD 20 million at face value of the bonds. The bonds’ maturity term was set to be 10 years. According to the issue provisions, the bank may completely redeem the bonds before maturity starting from 15 September 2015. These bonds have not been included in the list of Nasdaq Riga stock exchange.

The decision about the premature redemption of the subordinated bonds was taken as the bank’s capital adequacy ratio significantly exceeds the level provided by the regulator and allows the bank to decrease costs of interest rates related to subordinated capital attraction. All necessary admissions that are required to perform the redemption of bonds have been received from the FCMC and ECB.

As we informed earlier, the bank initiated gradual replacement of long-term deposits with bonds at the end of 2011. Including the redeemed bonds, we have performed 29 public bond issues so far. Currently, there are 19 ABLV Bank bond issues included in the Nasdaq Riga Baltic list of debt securities.

ABLV Bank, AS is the largest independent private bank in Latvia. The bank’s major shareholders — Oļegs Fiļs, Ernests Bernis and Nika Berne – directly and indirectly hold 86.25% 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, Vladivostok, Kiev, Odessa, Minsk, Almaty, Baku, Tashkent, Hong Kong, and Limassol.

Ilmārs Jargans
Head of Public Relations Department
+371 6777 5296