ABLV Bank advises Citadele bank on bond issue

Riga, Latvia, November 9, 2016, 15:57 / Investments

Citadele bank plans to perform the issue of subordinated bonds, amounting up to EUR 40 million. The bonds are supposed to be admitted to the regulated market – Baltic list of debt securities of the stock exchange Nasdaq Riga. The purpose of the issue is to strengthen the bank’s capital in order to achieve future business objectives by using the raised funds as the bank’s subordinated capital, as well as to perform early repayment of subordinated loan obtained from the Latvian Privatisation Agency. The bonds will be offered to the investors in Latvia and Lithuania, and qualified investors from other EEA countries will be also able to acquire the bonds.

Citadele bank is provided advice by ABLV Bank on the programme implementation. ABLV Bank has accrued substantial experience in this area by issuing its own bonds. So far, 39 public bond issues have been performed, their total amount exceeding EUR 1 billion. Therefore, ABLV Bank now offers this service to its clients and cooperation partners as well.

ABLV Bank will also be the underwriter of the Citadele bond issue. ‘The role of our bank under the bond issue can vary depending on the client’s needs – ranging from drawing up the issue prospectus to performing the issue, ensuring custody and accounting of the securities, rendering services under corporate events, and communicating with relevant institutions. As far as Citadele is concerned, this will be a valuable and promising investment for us,’ said Māris Kannenieks, Chief Financial Officer of ABLV Bank.

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 86.55% 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, Limassol, and New York.